G Co.,which is a biotechnology firm,reported the following revenues on their 2012 income statement: Product sales $582.2 million,Royalties $214.7 million,Contract revenue $107.0 million and Interest income $64.1 million.Their cost of sales were reported as $104.5 million.What was their gross profit percentage?

Question

Quizplus · Accepted Answer

Gross profit is calculated as (Total Revenue - Cost of Sales) / Total Revenue. Total Revenue = $582.2M + $214.7M + $107.0M + $64.1M = $968M. Gross Profit = $968M - $104.5M = $863.5M. Gross Profit Percentage = ($863.5M / $968M) * 100 = 89.2%.

G Co,Which Is a Biotechnology Firm,reported the Following Revenues on Their