## Gross profit rate is equal to quizlet

To calculate the gross profit, we first add up the cost of goods sold, which sums up to $126,584. We do not include selling, administrative and other expenses since these are mostly fixed costs. We then subtract the cost of goods sold from revenues to obtain a gross profit of $151,800 - $126,584 = $25,216 Gross Profit is equal to? a) sales plus (sales discounts and sales returns and allowances) plus cost of goods sold. b) sales plus sales returns and allowances less sales discounts less cost of goods sold. c) sales plus sales discounts less sales returns and allowances less cost of goods sold. d) sales less (sales discounts Gross profit equals net sales after cost of goods sold is deducted but before other selling and administrative costs are deducted. From gross profit, managers can calculate gross profit rate. The gross profit rate can then be applied at any time to estimate current costs and evaluated over time to measure company efficiency. Gross profit ratio | Gross profit equation December 05, 2018 / Steven Bragg. The gross profit ratio shows the proportion of profits generated by the sale of products or services, before selling and administrative expenses. It is used to examine the ability of a business to create sellable products in a cost-effective manner. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear

## Gross Profit is equal to? a) sales plus (sales discounts and sales returns and allowances) plus cost of goods sold. b) sales plus sales returns and allowances less sales discounts less cost of goods sold. c) sales plus sales discounts less sales returns and allowances less cost of goods sold. d) sales less (sales discounts

The gross profit margin for Year 1 and Year 2 are computed as follows: Gross profit margin (Y1) = 265,000 / 936,000 = 28.3% Gross profit margin (Y2) = 310,000 / 1,468,000 = 21.1% Notice that in terms of dollar amount, gross profit is higher in Year 2. Nonetheless, the gross profit margin deteriorated in Year 2. The basic components of the formula of gross profit ratio (GP ratio) are gross profit and net sales. Gross profit is equal to net sales minus cost of goods sold. Net sales are equal to total gross sales less returns inwards and discount allowed. To calculate the gross profit, we first add up the cost of goods sold, which sums up to $126,584. We do not include selling, administrative and other expenses since these are mostly fixed costs. We then subtract the cost of goods sold from revenues to obtain a gross profit of $151,800 - $126,584 = $25,216 Gross Profit is equal to? a) sales plus (sales discounts and sales returns and allowances) plus cost of goods sold. b) sales plus sales returns and allowances less sales discounts less cost of goods sold. c) sales plus sales discounts less sales returns and allowances less cost of goods sold. d) sales less (sales discounts Gross profit equals net sales after cost of goods sold is deducted but before other selling and administrative costs are deducted. From gross profit, managers can calculate gross profit rate. The gross profit rate can then be applied at any time to estimate current costs and evaluated over time to measure company efficiency. Gross profit ratio | Gross profit equation December 05, 2018 / Steven Bragg. The gross profit ratio shows the proportion of profits generated by the sale of products or services, before selling and administrative expenses. It is used to examine the ability of a business to create sellable products in a cost-effective manner.

### The basic components of the formula of gross profit ratio (GP ratio) are gross profit and net sales. Gross profit is equal to net sales minus cost of goods sold. Net sales are equal to total gross sales less returns inwards and discount allowed.

1 Answer to The gross profit rate is equal to: (a) net income divided by sales. (b) cost of goods sold divided by sales. (c) net sales minus cost of goods sold, divided by net sales. (d) sales minus cost of goods sold, divided by cost of goods sold. - 533523 (The gross margin ratio is also known as the gross profit margin or the gross profit percentage or simply the gross margin.) Companies should be continuously monitoring its gross margin ratio to be certain it is sufficient to cover its selling, general and administrative expenses, interest expense, and to earn a profit. Example of Gross Margin Gross profit margin is a profitability ratio that calculates the percentage of sales that exceed the cost of goods sold. In other words, it measures how efficiently a company uses its materials and labor to produce and sell products profitably. Net profit is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period. Gross Margin vs Net Margin Gross margin is the ratio of gross profit to Gross profit refers to a company's profits earned after subtracting the costs of producing and distributing its products. Net income indicates a company's profit after all of its expenses have

### Net profit is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period. Gross Margin vs Net Margin Gross margin is the ratio of gross profit to

B) gross profit minus depreciation. C) EBIT times one minus the tax rate plus depreciation. D) EBIT plus depreciation. Answer: C Topic: Operating Cash Flow Net profit margin is a financial ratio comparing a company's net profit after taxes to Profit margins vary by sector and industry, but all else being equal, the higher a Subtracting $150,000 in operating expenses from the $300,000 gross profit The GNP (Gross National Product = everything the nation produces in one year). is about how many times larger today than it was when my father was working.

## A company makes a credit sale of $750 on June 13, terms 2/10, n/30, on which it grants a return of $50 on June 16.

Disposable income is the major determinant of consumption spending in Classical economics held that interest rates determined saving, and hence consumption, is in Keynesian macroeconomic equilibrium, planned investment is equal to include only government consumption expenditure and gross investment, not B) gross profit minus depreciation. C) EBIT times one minus the tax rate plus depreciation. D) EBIT plus depreciation. Answer: C Topic: Operating Cash Flow Net profit margin is a financial ratio comparing a company's net profit after taxes to Profit margins vary by sector and industry, but all else being equal, the higher a Subtracting $150,000 in operating expenses from the $300,000 gross profit The GNP (Gross National Product = everything the nation produces in one year). is about how many times larger today than it was when my father was working. Definition of Gross Margin Ratio The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net The gross profit rate is equal to: (a)Net income divided by sales. (b)Cost of goods sold divided by sales. (c)Net sales minus cost of goods sold, divided by net sales. (d)Sales minus cost of goods sold, divided by cost of goods sold. Gross profit will result if: sales revenues are greater than cost of goods sold. If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, what is the gross profit?

The gross profit margin for Year 1 and Year 2 are computed as follows: Gross profit margin (Y1) = 265,000 / 936,000 = 28.3% Gross profit margin (Y2) = 310,000 / 1,468,000 = 21.1% Notice that in terms of dollar amount, gross profit is higher in Year 2. Nonetheless, the gross profit margin deteriorated in Year 2. The basic components of the formula of gross profit ratio (GP ratio) are gross profit and net sales. Gross profit is equal to net sales minus cost of goods sold. Net sales are equal to total gross sales less returns inwards and discount allowed. To calculate the gross profit, we first add up the cost of goods sold, which sums up to $126,584. We do not include selling, administrative and other expenses since these are mostly fixed costs. We then subtract the cost of goods sold from revenues to obtain a gross profit of $151,800 - $126,584 = $25,216 Gross Profit is equal to? a) sales plus (sales discounts and sales returns and allowances) plus cost of goods sold. b) sales plus sales returns and allowances less sales discounts less cost of goods sold. c) sales plus sales discounts less sales returns and allowances less cost of goods sold. d) sales less (sales discounts Gross profit equals net sales after cost of goods sold is deducted but before other selling and administrative costs are deducted. From gross profit, managers can calculate gross profit rate. The gross profit rate can then be applied at any time to estimate current costs and evaluated over time to measure company efficiency. Gross profit ratio | Gross profit equation December 05, 2018 / Steven Bragg. The gross profit ratio shows the proportion of profits generated by the sale of products or services, before selling and administrative expenses. It is used to examine the ability of a business to create sellable products in a cost-effective manner. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear