Answer:
Gross profit margin = 33.7%
Operating expenses = $184,300
Explanation:
The gross margin is the percentage of sales value is earned as gross profit.
Gross profit = Sales - cost of goods sold
=847,000 -561,500 =$285,500
<em>Gross profit margin = (Sales - cost of goods sold)/sales × 100</em>
= (847,000 -561,500/847,000) × 100
= 33.7%
<em>Operating expenses represent the amount of indirect cost expenditures which cannot be traced to the cost of the goods sold . This include administrative expenses like rent, insurance e.t.c</em>
<em>Operating expense = Gross profit - Net income</em>
= (847,000 -561,500) - 101,200
= 184,300
