Homework SourseFind the gross margin percent when Gross sales 750000 Custo
Find the gross margin percent when:
Gross sales = $750,000
Customer returns & allowances = $3,200
Billed cost of goods = $300,000
Freight charges = $2,200
Cash discounts = 2%
Solution
Gross profit = Gross profit*100/Net sales
= 429664*100/731864
Gross profit = 58.71%
| Gross sales | 750000 |
| Less: Customer returns & allowances | (3200) |
| 746800 | |
| Less: Cash discount | (14936) |
| Net sales | 731864 |
| Less: Cost of goods | (300000) |
| Less: Freight charge | (2200) |
| Gross profit | 429664 |
