In 2019, Shield Company incurred cost of goods sold of $59,716 million on net sales of $64,260 million. What is Shield's gross profit percentage for 2019?

Question

Quizplus · Accepted Answer

Gross profit on sales = Net Sales - Cost of goods sold
X = $64,260 - $59,716
X = $4,544 = Gross profit on sales
Gross profit percentage = Gross profit on sales / Net sales
X = $4,544 / $64,260
X = 0.071 = 7.1%

In 2019, Shield Company Incurred Cost of Goods Sold of $59,716