Compute the gross profit as percentage of cost of goods sold

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Question - Companies may express their gross profit as a percentage of net sales or as a percentage of cost of goods sold. The following data are available on two different companies:

Company A gross profit as a percentage of net sales 25%

Company B gross profit as a percentage of cost of goods sold 65%

Required -

a. Compute the gross profit as a percentage of cost of goods sold for Company A. When required, round your answer to the nearest whole percent.

b. Compute the gross profit as a percentage of net sales for Company B. When required, round your answer to the nearest whole percent.

Reference no: EM133030103

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