If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold. The gross profit rate is then calculated by dividing the gross profit by net sales. Here, gross profit is $600,000 - $390,000 = $210,000. The gross profit rate is $210,000 / $600,000 = 0.35 or 35%.

If a Company Has Sales Revenue of $630,000, Net Sales