A company sells $10,000 of goods.The gross profit percentage is 32%.Net income would be $3,200.

Name: A company sells $10,000 of goods.The gross profit percentage is 32%.Net income would be $3,200.
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Question

Quizplus · Accepted Answer

Gross profit percentage applies to sales, not net income. A 32% gross profit on $10,000 of sales equals $3,200 gross profit, not net income. Net income would also account for other expenses beyond cost of goods sold.

A Company Sells $10,000 of Goods