Question
Asked Dec 18, 2019
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Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes’s gross profit percentage for this period? (Round your answer to the nearest whole percent.)

  • 36% 
  • 3.4 times 
  • 64% 
  • 17%
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Expert Answer

Step 1

Gross Profit Percentage:

 

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. Gross profit is the difference between the total revenues and cost of goods sold.

Step 2

Calculate the gross profit percentage.

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Gross profit(1) Gross profit percentage=: x100 Net sales revenue $32,000 -x100 $90,000 = 36%

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Step 3

Working Note (1):

 

Calculate the gross profit:

...
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Gross profit=Net sales revenue – Cost of goods sold =$90,000 – $58,000 = $32,000

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