The management team at ABC Corp. wants to maintain a gross profit margin of 40%. If the estimate for net sales in 2021 is $8 million, how much gross profit will be necessary for 2021 to maintain this ratio?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...
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Please solve general accounting question do fast and not use ai

The management team at ABC Corp. wants to maintain a gross
profit margin of 40%. If the estimate for net sales in 2021 is $8
million, how much gross profit will be necessary for 2021 to
maintain this ratio?
Transcribed Image Text:The management team at ABC Corp. wants to maintain a gross profit margin of 40%. If the estimate for net sales in 2021 is $8 million, how much gross profit will be necessary for 2021 to maintain this ratio?
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