Answer:
20%
Explanation:
Gross profit is the net of sales and cost of sales. Gross Profit percentage is the ratio of gross profit to sales expressed as percentage.
Product Units Produced Final Sales Value per Unit Separate Costs
A 10,000 $25 $125,000
B 15,000 $30 $250,000
C <u> 12,500 </u> <u> $24 </u> <u> $125,000</u>
Total 37,500 $500,000
Sales Value
A (10,000 x $25) $250,000
B (15,000 x $30) $450,000
C (12,500 x $24) <u>$300,000</u>
Total Sales Value $1,000,000
Less
Joint Cost ($300,000)
Separable cost <u>($500,000)</u>
Gross Profit $200,000
Gross Profit Percentage = ( $200,000 / $1,000,000 ) x 100 = 20%
