The management team at StarTech Inc. is aiming for a gross profit margin of 40%. If the estimate for net sales in 2025 is $8 million, how much gross profit will be necessary for 2025 to maintain this ratio?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4: Preparing And Using Financial Statements
Section: Chapter Questions
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The management team at StarTech Inc. is
aiming for a gross profit margin of 40%. If the
estimate for net sales in 2025 is $8 million,
how much gross profit will be necessary for
2025 to maintain this ratio?
Transcribed Image Text:The management team at StarTech Inc. is aiming for a gross profit margin of 40%. If the estimate for net sales in 2025 is $8 million, how much gross profit will be necessary for 2025 to maintain this ratio?
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