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Q27E

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Horngren'S Financial And Managerial Accounting
Found in: Page 303

Short Answer

Crazy Cookies earned net sales revenue of $66,000,000 in 2018. The cost of goods sold was $39,600,000, and net income reached $7,000,000, the company’s highest ever. Compute the company’s gross profit percentage for 2018.

The gross profit percentage of the company is 40%

See the step by step solution

Step by Step Solution

Step 1: Meaning of Gross Profit

Gross profit denotes the amount of profit left with the company after making the payments of all the costs associated with the business's sales process. It is computed after deducting the cost of goods sold from the net sales revenues.

Step 2: Computation of gross profit percentage

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