Question

LanWan Software earned net sales revenue of $62,000,000 in 2016. Cost of goods sold was $41,540,000​, and net income reached $9,000,000​, the​ company's highest ever. Compute the​ company's gross profit percentage for 2016. g

Answer 1

Answer:

33%

Explanation:

Given that,

Net sales revenue = $62,000,000

Cost of goods sold = $41,540,000

Net income reached the​ company's highest ever = $9,000,000

Gross profit:

= Net sales revenue - Cost of goods sold

= $62,000,000 - $41,540,000

= $20,460,000

Therefore, the gross profit percentage is calculated by dividing the gross profit by the net sales.

Gross profit percentage for 2016:

= (Gross profit ÷ Net sales) × 100

= ($20,460,000 ÷ $62,000,000) × 100

= 0.33 × 100

= 33%