Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Calculate his gross profit percentage.

Question

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Gross profit percentage = (Gross profit / Sales) * 100Gross profit = Sales - Cost of goods soldGross profit = $450,000 - $335,000Gross profit = $115,000Gross profit percentage = ($115,000 / $450,000) * 100Gross profit percentage = 25.6%

Mack Jacoby Sells Building Supplies