Chapter 5, Problem 5.12SE

To determine

Gross Profit Percentage: It is the financial ratio that shows the relationship between the gross profit and net sales. Gross Profit is the difference between the total revenue and the cost of goods sold. It is calculated by using the following formula:

$\text{Gross profit percentage}=\frac{\text{ Gross profit}}{\text{Net sales}}\times 100$

Note: $\text{Gross profit}=\text{Net sales – Cost of goods sold }$

To Calculate: The gross profit percentage of Company MLS for 2018.