During March, a music store had net sales of $270,000. The gross profit was $121,500 and the operating expenses were $108,000. As a percent of net sales, what was the gross profit margin? What was the net income for March? What was the net profit margin?

Question

Business

Sarai Gallagher

6 November, 02:28

During March, a music store had net sales of $270,000. The gross profit was $121,500 and the operating expenses were $108,000. As a percent of net sales, what was the gross profit margin? What was the net income for March? What was the net profit margin?

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Answers (1)

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Porter Cruz · Answer 1

Gross profit margin = 45%

Net income = $13,500

Net profit margin = 5%

Explanation:

Net sales = $270,000.

Gross profit = $121,500

Operating expenses = $108,000

Gross profit margin = (Gross profit : net sales) * 100

Gross profit margin = $ (121,500 : 270,000) * 100

Gross profit margin = 0.45 * 100 = 45%

Net income for March:

Gross profit - Total expenses

$121,500 - $108,000 = $13,500

Net profit margin:

(Net profit : net sales) * 100

(13500 : 270,000) * 100

Net profit margin = 5%