Gross Margin

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S.M. Ltd. had sales of $400,000 in 2011 (70% of its sales are credit). The company's gross profit margin is 10%, its ending inventory is $80,000, and its accounts receivable is $25,000. What amount...
The Falling Snow Company is considering the production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the...
In accounting, do tax payments and withholding get included when finding gross income?
In comparison of 2014 to 2013 performance, Weir Company's inventory turnover decreased substantially, although sales and inventory amounts were essentially unchanged. Which of the following stateme...
A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to...
The following information is available for Aikman Company. January 1, 2017 2017 December 31, 2017 Raw materials inventory $23,680 $31,650 Work in process inventory 16,120 18,470 Finished goods i...
The markup over dealer's cost of a new car ranges from 13% to 24%. If the sticker price is $26,000, over what range will the dealer's cost vary?
Gray Stevens and Mary James are production managers in the customer electronics division of General Electronics Company, which has several dozen plants scattered in locations throughout the world....
Financial information is presented here for two companies. Fill the missing amounts. Calculate the margin and the gross profit rate for the each company. Round answer to 0 decimal place.
Prices in most markets are determined as a mark-up over per unit wage costs, P = (W/a) x (1+z). Explain the factors underlying this price relation, as well as the underlying cause of inflation base...
If sales are $300,000 and cost of goods sold is $180,000, what is the gross profit and gross margin percentage?
A product with a high gross profit could be an unprofitable product. True False
Explain how to calculate gross profit ratio.
At the beginning of the year, Wildcat Athletic had an inventory of $300000. During the year, the company purchased goods costing $1200000. If Wildcat Athletic reported ending inventory of $450000 a...
Financial information is presented below: Operating expenses $21000 Sales returns and allowances 7000 Sales discounts 3000 Sales revenue 168000 Cost of goods sold 99000 The gross profit rate would...
What is Reed's Company's gross profit percentage (rounded) for the year, assuming the ending inventory totaled $685?
The selling price of a refrigerator, is $644.40. If the markup is 20% of the dealer's cost, what is the dealer's cost of the refrigerator?
The Nguyen Company sells beautiful oriental water fountains through wholesalers and retailers. They suspect that the retailer is taking an extra 15% more in markup than they should, but Nguyen Mana...
At the profit maximizing level of output for a monopolist: a. P = AR and AR = AC. b. P > MC and MR = MC c. P = MC and MR > MC. d. P = MR and AC = MC Holding supply conditions constant, the costs...
Beginning finished goods, 1/1/2015 $92,000, Ending finished goods, 12/31/2015 75,000, Cost of goods sold 300,000, Sales revenue 450,000, Operating expenses 95,000. What is the gross margin for 2015...
The following is Talley Company's income statement for the past year. Sales revenue $540,000 Cost of goods sold 324,000 Gross margin 216,000 Operating expenses 126,000 Operating income $90,000 1)...
Calculate cost of merchandise inventories, Gross profit and operating income. Both in dollar terms and percentage. 2016 2015 Cost of goods sold $8,511,100 $7,787,500 Inventories $1,378,500 $1,306,...
What is the purpose of a sales order form and a sales journal?
Dell can be considered a good example of a 'Chinese restaurant' in the sense that it makes its money by having a high asset turnover with a relatively low net profit margin. If Dell were to increas...
For the year ended December 31, 2020, the job cost sheets of Cinta Company contained the following data. Other data: 1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,0...
AutoPartsWarehouse.com purchases chrome rims for $710 (for a set of 4) and uses a markup of 55% on selling price. What will be the percent markup on cost? Give your answer as a percentage and round...
What is the gross development profit margin (rounded to the nearest percent) for a going in cap rate of 10 and a selling cap rate of 7 (round to the nearest whole percent; e.g.,18.18% is rounded to...
1. What is gross profit margin and what is net profit margin? 2. What are in the between the two? 3. Give a few examples to explain the items between these margins, and show how to analyze these...
Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition,...
Product T is produced for $5.90 per pound. Product T can be sold without additional processing for $7.10 per pound, or processed further into Product U at an additional cost of $0.74 per pound. Pro...
Company had the following account balances at the end of the current accounting period: Beginning inventory $73,000 Net purchases 58,250 Net sales revenue 87,500 The normal gross profit for the co...
The Baldwin Wholesale Company has begun 2013 with an inventory of $400,000 and ended the year with an inventory of $500,000. The company's gross profit ratio is 25%, the inventory turnover ratio is...
Shakespear's Pizza sells 1200 large veg Pizzas per week for $16 a pizza. When the owner offers a $5 discount, the weekly sales increases to 1,700. a) Assume a linear relation between the weekly sa...
If the price from the sale of x-units is given by p = 100 x - x^2, find the revenue function.
Most book publishers pay authors a percentage of the revenue from book sales. Explain the conflict that this creates between publishers and authors
The gross profit percentage decreased from 36.5% in 2014 to 24.8% in 2015. What is the trend in this change? a. This change represents a downward, or negative, trend. b. The trend cannot be deter...
Family Home and Security, Inc. sells super padlocks. It reported an increase in net sales from 5.0 billion in 2014 to 5.3 billion in 2015, and an increase in gross profit from 1.5 billion in 2014 t...
The following data was extracted from the records of Winsam Company: Sales Revenue 450 units at $35 per unit Beginning Inventory 100 units at $16 per unit Purchases 400 units at $20 per unit Wh...
A company had net sales of $788,500 and cost of goods sold of $562,260. Its net income was $25,640. The company gross margin ratio equals what?
Given below are account balances for Charlie Company: Gross sales $92,000 Sales returns and allowances $6,000 Selling expenses $12,000 Cost of goods sold $44,000 Interest expense $3,000 How much i...
Assume an item costs $2.00. If the firm wants a markup of 40% based on the selling price, what would be the final price?
Assume an item has an invoice cost of $15 and a selling price of $20. Compute the markup both as a percentage on selling price and percentage on cost.
Retailer selling price of a printer is $600 Retailer markup on selling price = 25% Wholesaler markup on selling price = 20% Manufacturer's cost is $200 What was the cost to the wholesaler?
On January 1, 2020, Jim Beam Company sold goods to a customer and received an installment note requiring payments of $15,000 annually for six years. The first payment was received by Jim Beam Compa...
Hat's accounting records showed the following: Inventory, January 1 $35,000 Purchases, January 1 through May 1 200,000 Sales, January 1 through May 1 250,000 Inventory not damaged by flood 30,000...
On March 31, a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,000 Net...
A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.
On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported a beginning inventory...
Swifty Corporation produces microwave ovens. The following per unit cost information is available: direct materials $28, direct labor $25, variable manufacturing overhead $12, fixed manufacturing o...
Your company provides a good to a customer and the customer pays you $150 in cash. To record this transaction you would Debit how much and credit how much?
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 Cash: 119,700 Accounts Receivabl...
Based on this, what is per unit margin cost and Gross margin? MSRP: $5.29 Volume Discount: 30% Promotion Allowance: 15% Unit Cost: $1.18 MSP: 3.70
The adjusted trial balance of Carla Vista Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2020: Sales Revenue: $841,900 Freight-Out: $16,400 Sales Ret...
Calip Corporation, a merchandising company, reported the following results for October: Sales $410,800, Cost of goods sold (all variable) $173,100, Total variable selling expense $17,500, Total fix...
The rate of markup on the cost of a badminton racquet selling at $57.64 is 31%. a) What was the cost of the racquet to the retailer? b) What is the rate of markup on selling price?
A company shows the following balances: Cost of goods sold $900,000 Sales 2,000,000 Sales discounts 25,000 Sales returns and allowances 225,000 What is the gross profit margin? a. 49.3% b. 48.6% c....
The sales discount account is a contra-account to Sales. True False
A company reports the following amounts at the end of the year: Compute the company's gross profit ratio.
A company earns a gross profit of 20% on cost. Its credit sales are thrice its cash sales. Its credit sales are Rs 400,000. Calculate the Gross Profit Ratio of the company.
Stubbs Company uses the perpetual inventory method. On January 1, 2016, Stubbs purchased 1,300 units of inventory that cost $11.00 each. On January 10, 2016, the company purchased an additional 600...
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