Answer:
Gross profit = $8,600
Gross profit percentage = increase by 37.39%
Explanation:
The formula to compute the gross profit is shown below:
= Sales revenue - the cost of goods sold
Or
= Sale value of merchandise - the cost of the merchandise
= $23,000 - $14,400
= $8,600
The computation of the gross profit percentage is shown below:
= (Gross profit ÷ Sales revenue) × 100
= ($8,600 ÷ $23,000) × 100
= 37.39%
Hence, the gross profit is increased by 37.39%
