Question

Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $181,000 and Cost of Goods Sold of $59,500. Candy Electronics Corp. reported Net Sales of $39,000 and Cost of Goods Sold of $28,600.

Calculate the Gross Profit Percentage for both companies.

Answer 1

Answer:

The gross profits of Sole Occhiali Group and Candy Electronics Corp. are 67.13% and 26.66% respectively.

Explanation:

In Business Studies and Accounting,Gross Profit percentage is calculated by subtracting the cost of goods sold from the net sales revenue and then dividing the result by net sales revenue and finally multiplying the entire expression with hundred.Here,the net sales revenue of Sole Occhiali Group is given as $181,000 and the costs of goods sold is $59,500 and for Candy Electronics Corp. they are $39,000 and $28,600 respectively.

Hence,gross profit percentage for Sole Occhiali Group=$(\frac{181,000-59,500}{181,000})\times 100$=$(\frac{121,500}{181,000})\times 100$=$(0.6713\times 100)$=67.13% approximately

Now,gross profit for Candy Electronics Corp.=$(\frac{39,000-28,600}{39,000})\times 100$=$(\frac{10,400}{39,000})\times 100$=$(0.2666\times 100)$=26.66% approximately