Question

Bramble Corp. reported net sales of $248,700, cost of goods sold of $146,900, operating expenses of $58,000, net income of $39,900, beginning total assets of $473,900, and ending total assets of $635,400. Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 10.5%.) Profit margin enter percentages rounded to 1 decimal place % Gross profit rate

Answer 1

Answer:

profit margin is 16.0 %

gross profit rate  is 39.6 %

Explanation:

given data

net sales = $248,700

cost of goods sold = $146,900

operating expenses = $58,000

net income = $39,900

beginning total assets = $473,900

ending total assets of $635,400

to find out

profit margin and gross profit rate

solution

we will apply here profit margin formula that is

profit margin = $\frac{net income}{sale} * 100$      ..............1

put here value

profit margin = $\frac{39900}{248700} * 100$  

profit margin = 16.04 = 16.0 %

and

gross profit rate formula is

gross profit rate  = $\frac{sales - cost of good }{sale} * 100$    ..............2

put here value

gross profit rate  = $\frac{245700 - 146900}{248700} * 100$

gross profit rate   is 39.72 = 39.6 %