Net sales for the year were $900,000 and cost of goods sold was $558,000 for the company's
Question:
Required:
a. Calculate gross profit and the gross profit ratio for the year.
b. What is the maximum cost per unit that can be incurred to manufacture the new product so that the product can be priced competitively and will not result in a reduction to the company's gross profit ratio?
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a Net sales 900000 1000 Cost of goods sold 558000 620 Gross profit 342000 380 Gross profit ratio 3...View the full answer
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Related Book For 
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
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