Homework Answers
Ana :The correct option for the answer is option D i.e. $400,000
Gross profit ratio= (Sales-costs)/ Sales
=(4,500,000-3,600,000)/4,500,000
=(900,000)//4,500,000*100
= 20%
Total sales= 4,500,000
Less: down payment= 500,000
Balance= 4,000,000
number of installments= 2
Installment received in 2019= 2,000,000
Gross profit ratio= 20%
Realized gross profit in 2019= 400,000
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