Asked by Nacole Watkins on Jun 18, 2024
Verified
What is George's gross profit rate if net sales are $108,000, operating expenses are $26,000, and cost of goods sold is $66,000? (Round your answer two decimal places, X.XX%.)
A) 38.89%
B) 24.07%
C) 37.04%
D) 61.11%
Gross Profit Rate
The ratio of gross profit to net sales, expressed as a percentage, indicating the efficiency of sales relative to the cost of goods sold.
Net Sales
The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and any discounts allowed.
Operating Expenses
Operating expenses are costs associated with running a business day-to-day, excluding costs linked to producing goods and services.
- Understand how to calculate and interpret gross profit rate.
Verified Answer
Learning Objectives
- Understand how to calculate and interpret gross profit rate.
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