Companies may express their gross profit as a percentage of net sales or as a percentage of

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Companies may express their gross profit as a percentage of net sales or as a percentage of cost of goods sold. The following data are available on two different companies:

Company A gross profit as a percentage of net sales 25%

Company B gross profit as a percentage of cost of goods sold 65%

Required:

a. Compute the gross profit as a percentage of cost of goods sold for Company A. When required, round your answer to the nearest whole percent.

b. Compute the gross profit as a percentage of net sales for Company B. When required, round your answer to the nearest whole percent.

Related Book For answer-question

Managerial Accounting for Managers

ISBN: 978-0073527130

2nd edition

Authors: Eric Noreen, Peter Brewer, Ray Garrison

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Posted Date: Apr 17, 2023 03:57 AM

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Companies may express their gross profit as a percentage of net sales or as a percentage of

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To compute the gross profit as a percentage of cost of goods sold for Company A we can use the follo... View the full answer

Managerial Accounting for Managers

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