Calculate net sales, gross profit, and gross profit ratio for each of the following situations. Round the gross profit ratio figure to the nearest whole percent.
 

	a	b	c	d
Sales	$170,000	$450,000	$225,000	$330,000
Sales discounts	5,000	3,000	11,000	2,000
Sales returns and allowances	1,100	2,100	4,000	11,500
Cost of goods sold	133,000	301,000	110,000	220,000

a. Which situation has the highest net sales?
b. Which situation has the highest gross profit ratio?

Answer rating: 100% (QA)

To calculate the net sales we need to subtract the sales discounts and sales returns and allowances ... View the full answer