A company has net sales of $80,000, cost of goods sold of $60,000, and operating expenses of $25,000

Accounting Nov 22, 2020

A company has net sales of $80,000, cost of goods sold of $60,000, and operating expenses of $25,000. Based on this information, the company’s gross profit margin is: 80%.

42%.

75%.

25%.

Expert Solution

Answer -

25 %

Explanation-

Net sales = 80,000

Cost of goods sold = 60,000

Gross profit = 20,000

Gross profit margin = Gross profit/ sales × 100

= 20,000 / 80,000 × 100

= 25 %

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