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Carol's Coat Closet had sales of $534,000 and the cost of goods sold of $157,300. a) What is the gross profit margin? b) If the average firm in the clothing industry had a gross profit margin of 60 percent, how is the firm doing?

Carol's Coat Closet had sales of $534,000 and the cost of goods sold of $157,300. a) What is the gross profit margin? b) If the average firm in the clothing industry had a gross profit margin of 60 percent, how is the firm doing?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8DQ: Suppose a firm with a contribution margin ratio of 0.3 increased its advertising expenses by 10,000...
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Carol's Coat Closet had sales of $534,000 and the cost of goods sold of $157,300. a) What is the gross profit margin? b) If the average firm in the clothing industry had a gross profit margin of 60 percent, how is the firm doing?
Transcribed Image Text:Carol's Coat Closet had sales of $534,000 and the cost of goods sold of $157,300. a) What is the gross profit margin? b) If the average firm in the clothing industry had a gross profit margin of 60 percent, how is the firm doing?
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