If net sales are $800,000 and cost of goods sold is $600,000, the gross profit rate is 25%.

Name: If net sales are $800,000 and cost of goods sold is $600,000, the gross profit rate is 25%.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Gross profit rate is calculated as follows:
Gross Profit Rate = (Net Sales - Cost of Goods Sold)/Net Sales x 100%
In this case, Gross Profit Rate = ($800,000 - $600,000)/$800,000 x 100% = 25%. Therefore, the statement is true.

If Net Sales Are $800,000 and Cost of Goods Sold