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Financial information is presented below: Operating expenses $24,000; Sales returns and...

Question:

Financial information is presented below:

Operating expenses {eq}\$24,000 {/eq}

Sales returns and allowances {eq}6,000 {/eq}

Sales discounts {eq}4,000 {/eq}

Sales revenue {eq}154,000 {/eq}

Cost of goods sold {eq}92,000 {/eq}

The gross profit rate would be: {eq}\rule{1cm}{0.15mm} {/eq}.

Profit Margin:

The profit margin is computed as the gross profit margin and the net profit margin. The gross profit margin shows the income earned over the operating activities.

Answer and Explanation: 1

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Compute the gross profit rate as follows:

Computation for Gross Profit Rate
Particulars Amount Amount
Ne...

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What Is Gross Profit? - Definition, Formula & Calculation

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Chapter 9 / Lesson 7
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Understand the meaning of gross profit in accounting. Discover the formula for calculating gross profit and explore some examples of gross profit calculation.


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