Financial information is presented below:
|Sales returns and allowances||7000|
|Cost of goods sold||99000|
The gross profit rate would be
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
Answer : C. 0.37
The gross profit rate is the ratio of gross profit over the net sales and would be computed as follows:
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fromChapter 5 / Lesson 17
Learn how gross profit is calculated. Explore how to calculate gross profit margin, the definition of revenue, and the difference between gross and net profit.