Tamarisk, Inc. reported net sales $880,000; cost of goods sold $572,000; operating expenses $231.000; and net...

Question

Question

Tamarisk, Inc. reported net sales $880,000; cost of goods sold $572,000; operating expenses $231.000; and net income $74,800.

Answer 1

Answer #1

The correct answer is :

Profit Margin	8.50%
Gross Profit Rate	35.0%

Notes:

Gross Profit = Net Sales - Cost of Goods Sold

= $ 880,000 - $ 572,000

= $ 308,000

Gross Profit Rate = Gross Profit / Net Sales *100

= $ 308,000 / $ 880,000 *100

= 35.0%

Profit Margin = Net Income / Net Sales *100

= $ 74,800 / $ 880,000 *100

= 8.50%

Answer 2

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