Financial information is presented below: Operating expenses $21000 Sales returns and...
Question:
Financial information is presented below:
| Operating expenses | $21000 |
| Sales returns and allowances | 7000 |
| Sales discounts | 3000 |
| Sales revenue | 168000 |
| Cost of goods sold | 99000 |
The gross profit rate would be
A. 0.42.
B. 0.63.
C. 0.37.
D. 0.35.
Gross profit
Gross profit is the excess of net sales over necessary costs in producing the product, either direct or indirect. Such costs include fixed costs and variable costs.
Answer and Explanation: 1
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View this answerAnswer : C. 0.37
The gross profit rate is the ratio of gross profit over the net sales and would be computed as follows:
| Sales revenue | $168,000 |
| Le... |
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