If net sales are $1,000,000 and cost of goods sold is $800,000, the gross profit margin is 20%.

Name: If net sales are $1,000,000 and cost of goods sold is $800,000, the gross profit margin is 20%.
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Question

Quizplus · Accepted Answer

The gross profit margin is calculated by subtracting cost of goods sold from net sales and then dividing by net sales. In this case, the calculation would be ($1,000,000 - $800,000) / $1,000,000, which equals 0.2 or 20%. Therefore, the answer is A) True.

If Net Sales Are $1,000,000 and Cost of Goods Sold