If total merchandise available for sale is 72 percent of net sales and cost of goods sold is 64 percent of net sales,gross profit on sales is
A) 8 percent of net sales.
B) 36 percent of net sales.
C) 28 percent of net sales.
D) 20 percent of net sales.

Question

Quizplus · Accepted Answer

Gross profit on sales = Net sales - Cost of goods sold= Net sales - (64% of net sales)= Net sales - 0.64 * Net sales= 0.36 * Net sales= 36% of net sales

If Total Merchandise Available for Sale Is 72 Percent of Net