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17 July, 12:29

Merchandisers buy products and resell them. Examples of merchandisers include Walmart and Home Depot. A merchandiser's costs on the income statement include the cost of goods sold. Gross profit, or gross margin, equals sales minus cost of goods sold. True or false?

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  1. 17 July, 12:34
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    True

    Explanation:

    The formula to compute the gross profit or gross margin is shown below:

    As we know that

    The gross profit equals to

    Gross profit = Sales revenue - cost of goods sold

    And, the cost of goods sold equals yo

    Cost of goods sold = Opening stock + purchase - closing stock

    So after deducting the cost of goods sold from the sales revenue we can get the gross profit or gross margin

    Hence, the given statement is true
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