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Murljashka [212]
3 years ago
10

A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross margin

Business
1 answer:
lidiya [134]3 years ago
3 0

Answer:

Gross margin = $219,000

Operating income = $198,720

Explanation:

The computation of gross margin

and operating expenses is shown below:-

Gross margin = Net sales - Cost of goods sold

= $788,500 - $569,500

= $219,000

Net income = Gross margin - Operating expenses

$26,280 = $219,000 - Operating expenses

Operating expenses = $219,000 - $26,280

= $198,720

Therefore the gross margin is $219,000 and operating income is $198,720

We simply applied the above formulas

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