Elite Fashion had sales of $720,000 and cost of goods sold of $504,000. a. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the fashion industry had a gross profit of 28 percent, how is the firm doing?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
icon
Related questions
Question
100%

Quick answer of this accounting questions

Elite Fashion had sales of $720,000 and cost of goods sold of
$504,000. a. What is the gross profit margin (ratio of gross profit to
sales)? b. If the average firm in the fashion industry had a gross profit
of 28 percent, how is the firm doing?
Transcribed Image Text:Elite Fashion had sales of $720,000 and cost of goods sold of $504,000. a. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the fashion industry had a gross profit of 28 percent, how is the firm doing?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer