Answer: 30%
Explanation:
Given that,
Sales Revenue = $2,000,000
Sales Returns and Allowances = $360,000
Sales Discounts = $40,000
Cost of Goods Sold = $1,120,000
Gross profit = Sales Revenue - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold
= $2,000,000 - $360,000 - $40,000 - $1,120,000
= $480,000
Gross profit percentage = [tex]\frac{Gross\ profit}{Net\ sales} \times100[/tex]
= [tex]\frac{480000}{1600000} \times100[/tex]
=0.30 × 100
= 30%
