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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?

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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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