Ask Question
13 September, 13:56

Campus Stop is considering a contract to sell merchandise to a campus organization for $23,000. This merchandise will cost Campus Stop $14,400. Would this contract increase (or decrease) Campus Stop's dollars of gross profit and its gross profit percentage?

+5
Answers (1)
  1. 13 September, 13:58
    0
    Gross profit = $8,600

    Gross profit percentage = increase by 37.39%

    Explanation:

    The formula to compute the gross profit is shown below:

    = Sales revenue - the cost of goods sold

    Or

    = Sale value of merchandise - the cost of the merchandise

    = $23,000 - $14,400

    = $8,600

    The computation of the gross profit percentage is shown below:

    = (Gross profit : Sales revenue) * 100

    = ($8,600 : $23,000) * 100

    = 37.39%

    Hence, the gross profit is increased by 37.39%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Campus Stop is considering a contract to sell merchandise to a campus organization for $23,000. This merchandise will cost Campus Stop ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers