Casual Fashions had net sales of 380000 The store had a 6 lo

Casual Fashions had net sales of $380,000. The store had a 6% loss and the gross margin was 48.5%. What was the store’s operating expense percent?

Solution

Gross Profit Ratio = Gross profit/Net Sales

48.5% = Gross profit/380000

Gross Profit = 184300

Net Loss % = Net loss/Net sales

6% = Net loss/380000

Net Loss = 22800

Operating expense = 184300+22800 = 207100

Operating Ratio = Operating expense/net sales

207100/380000 = 54.5%