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13 May, 17:07

Bridgeport Corp. reported net sales of $256,800, cost of goods sold of $122,300, operating expenses of $48,000, net income of $41,800, beginning total assets of $493,100, and ending total assets of $591,900. Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e. g. 10.5%.)

Profit margin enter percentages rounded to 1 decimal place %.

Gross profit rate enter percentages rounded to 1 decimal place %.

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  1. 13 May, 17:18
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    The answers are:

    A) Net profit margin rate = 16.3%

    B) Gross profit margin rate = 52.4%

    Explanation:

    A) Net profit margin rate can be calculated using the following equation:

    Net profit margin rate = (net income / net sales) x 100

    Net profit margin rate = ($41,800 / $256,800) x 100

    Net profit margin rate = 16.3%

    B) Gross profit margin rate can be calculated using the following equation:

    Gross profit margin rate = [ (net sales - COGS) / net sales] x 100

    Gross profit margin rate = [ ($256,800 - $122,300) / $256,800] x 100

    Gross profit margin rate = 52.4%
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