Give true answer this financial accounting question The management team at Blue-sky Electronics is planning forthe upcoming fiscal year. They want to maintain a gross profitmargin of 40%. If the estimate for net sales in 2024 is $12million, how much gross profit will be necessary for 2024 tomaintain this ratio?

Step 1: Definition of Gross ProfitGross Profit is the amount a company retains after subtracting the…

Answered: The management team at Blue-sky…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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The management team at Blue-sky Electronics is planning for the upcoming fiscal year. They want to maintain a gross profit margin of 40%. If the estimate for net sales in 2024 is $12 million, how much gross profit will be necessary for 2024 to maintain this ratio?