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ABC company had sales of $5,000,000 last year. The company also had interest expense of $50,000, general and administrative expense of $1,500,000 and Cost of Goods Sold of $2,000,000. What was ABC's Gross Margin and Gross Margin %

Respuesta :

Answer:

$3,000,000 and 60%

Explanation:

The computation of the gross margin and the gross margin percentage is shown below:

Gross margin = Net sales - cost of goods sold  

So,

= $5,000,000  - $2,000,000

= $3,000,000

And, the gross margin percentage is

= (Gross margin ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100

= 60%

All the other information i.e mentioned is not relevant. Hence, ignored it

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