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Summer Benson
on Nov 14, 2024

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The gross profit rate is computed by dividing gross profit by

A) cost of goods sold.
B) net income.
C) net sales.
D) sales revenue.

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.

Net Sales

The total revenue generated from goods or services sold by a company, minus returns, allowances, and discounts.

Gross Profit

The financial result obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

  • Compute and clarify the margin of gross profit.
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Ariel MunroeNov 19, 2024
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