Olly Company is a merchandising business that sells dog food. Based on the following information, what is the gross margin for Olly Company?
Sales Revenue: $581,300
Accounts Receivable: 62,900
Cost of goods sold: 418,200
Operating expenses: 58,600
Gross margin is a line item found on the income statement. This figure is calculated by subtracting cost of goods sold from revenues. Gross margin is therefore equal to the funds available to pay for expenses other than cost of goods sold. Gross margin may be expressed in dollars or as a percentage.
Answer and Explanation:
Gross margin is calculated by subtracting cost of goods sold from total revenues.
|Less: Cost of Goods Sold||(418,200)|
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from Financial Accounting: Help and ReviewChapter 5 / Lesson 17