Question

Last year, Sally had a gross profit margin of 68% in her hair salon. Her gross profit was $32,508.63. How much did Sally make in net sales last year?
a.
$16,398.06
b.
$22,105.87
c.
$35,610.25
d.
$47,806.81

Answer 1

A business' profit margin is the ratio between the gross profit and net sales. It's ideal for a business to have a profit margin closest to 1. For the given situation, Sally has a gross profit of $32, 508.63 and a profit margin of 68% or 0.68. Thus, we have 

$0.68 = \frac{32508.63}{sales}$
$sales = \frac{32508.63}{0.68} = 47806.81$

Therefore,  the net sales earned by Sally's hair salon is $47, 806.81. 

Answer: D. $ 47, 806.81

Answer 2

Answer:

$47,806.81 (D)

Step-by-step explanation: