Refer to the following information to answer the question(s)regarding Anita Lupino's toy and game shop:
Anita Lupino is planning to open her own toy and game shop. She has conducted a great deal of research at the local library, contacted the industry trade association, and has set up a meeting with a consultant at the SBDC next week. Before she goes to the SBDC, she wants to sketch out an estimated income statement. She reviews the following data from RMA's Annual Statement Studies:
Cost of Goods Sold 57.3 percent of net sales
Operating Expenses 32.9 percent of net sales
Gross Profit 42.7 percent of net sales
-If Anita's research suggests that she can expect net sales of $475,000, what net profit could she expect?
A)$202,825
B)$46,550
C)$69,350
D)$156,275

Question

Quizplus · Accepted Answer

Net profit is calculated as net sales minus cost of goods sold and operating expenses. With net sales of $475,000, cost of goods sold is 57.3% of $475,000, and operating expenses are 32.9% of $475,000. Subtract these from net sales to find net profit.

Refer to the Following Information to Answer the Question(s)regarding Anita