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26 October, 04:13

During March, a music store had net sales of $270,000. The gross profit was $121,500 and the operating expenses were $108,000. As a percent of net sales, what was the gross profit margin? What was the net income for March? What was the net profit margin?

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  1. 26 October, 04:23
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    Gross profit margin = 45%

    Net income = $13,500

    Net profit margin = 5%

    Explanation:

    Net sales = $270,000.

    Gross profit = $121,500

    Operating expenses = $108,000

    Gross profit margin = (Gross profit : net sales) * 100

    Gross profit margin = $ (121,500 : 270,000) * 100

    Gross profit margin = 0.45 * 100 = 45%

    Net income for March:

    Gross profit - Total expenses

    $121,500 - $108,000 = $13,500

    Net profit margin:

    (Net profit : net sales) * 100

    (13500 : 270,000) * 100

    Net profit margin = 5%
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