Fairway Company had a S 16000 beginning inventory and a 2000

Fairway Company had a S 16,000 beginning inventory and a $20,000 ending inventory. Net sales were S 170 000 sold for the period is $90,000 wances. S. 00 eight in·99 chases. S purchase re n an all and Co ng is What is Fairway\'s gross profit percentage (rounded to the nearest percentage)? OA, 9% B. OC, OD 1296. 47% 53%

Solution

Gross profit=Net sales-COGS

=(170,000-90,000)=$80,000

Hence Gross profit %=Gross profit/Net sales

which is equal to

=(80,000/170,000)

=47%(approx).