A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross margin

and operating expenses, respectively, are:

Question

Nola Singh

Business

19 May, 13:08

A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross margin

and operating expenses, respectively, are:

+2

Answers (1)

Know the Answer?

Amanda Klein · Answer 1

Gross margin = $219,000

Operating income = $198,720

Explanation:

The computation of gross margin

and operating expenses is shown below:-

Gross margin = Net sales - Cost of goods sold

= $788,500 - $569,500

= $219,000

Net income = Gross margin - Operating expenses

$26,280 = $219,000 - Operating expenses

Operating expenses = $219,000 - $26,280

= $198,720

Therefore the gross margin is $219,000 and operating income is $198,720

We simply applied the above formulas

A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross marginand operating expenses, respectively, are:

A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross margin

and operating expenses, respectively, are: