Bramble Lane Outfitters Ltd. reports net sales of 75,000 and cost of goods sold of 48,750 for the quarter. Compute its gross margin percentage, to one decimal place.
Bramble Lane Outfitters Ltd. reports net sales of 75,000 and cost of goods sold of 48,750 for the quarter. Compute its gross margin percentage, to one decimal place.
Answer
35
Cells - Gross margin percentage · ±0.05 · unit % Gross profit = 75,000 − 48,750 = 26,250. Gross margin % = 26,250 ÷ 75,000 = **35.0 %**. The denominator is net sales, never cost of goods sold. Excel: `=(75000-48750)/75000`.
Hermanson Vol 1 ch 6 (merchandising transactions; perpetual and periodic); Dauderis & Annand §5.1, §5.2, §5.7; Lyryx Intermediate FA Vol 1 §7.3.1; OpenStax Accounting Vol 1 §6.2 (concept map H1, H2)