A company has a net sales of 847000 and cost of goods sold of 561500. Its net income is 101200. The company's gross margin and operating expenses, respectively are

Gross profit margin = 33.7%

Operating expenses = $184,300

Explanation:

The gross margin is the percentage of sales value is earned as gross profit.

Gross profit = Sales - cost of goods sold

=847,000 - 561,500 = $285,500

Gross profit margin = (Sales - cost of goods sold) / sales * 100

= (847,000 - 561,500/847,000) * 100

= 33.7%

Operating expenses represent the amount of indirect cost expenditures which cannot be traced to the cost of the goods sold. This include administrative expenses like rent, insurance e. t. c

Operating expense = Gross profit - Net income

= (847,000 - 561,500) - 101,200

= 184,300