Swank Clothiers had sales of $450,000 and cost of goods sold of $288,000. a. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the clothing industry had a gross profit of 30 percent, how is the firm doing?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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Swank Clothiers had sales of $450,000
and cost of goods sold of $288,000.
a. What is the gross profit margin
(ratio of gross profit to sales)?
b. If the average firm in the clothing
industry had a gross profit of 30
percent, how is the firm doing?
Transcribed Image Text:Swank Clothiers had sales of $450,000 and cost of goods sold of $288,000. a. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the clothing industry had a gross profit of 30 percent, how is the firm doing?
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