Olivera Inc. provides the following data for the year 2015: On vertical analysis report, gross profit as a percentage of net sales will be:
A)35.9%
B)41.67%
C)56.1%
D)44.1%

Question

Olivera Inc. provides the following data for the year 2015:  On vertical analysis report, gross profit as a percentage of net sales will be:
A)35.9% 
B)41.67% 
C)56.1% 
D)44.1%

Quizplus · Accepted Answer

To calculate the gross profit as a percentage of net sales, we divide the gross profit by net sales and multiply by 100:

Gross Profit / Net Sales * 100

= $3,500 / $8,400 * 100

= 41.67%

Therefore, the answer is B, 41.67%.