Use the following information to answer the question below Opening stock---------2,300 Purchases-------------11,874 Sales--------------------18,600 Closing ...

Use the following information to answer the question below

Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500

The percentage of gross profit to sales is

Answer Details

The percentage of gross profit to sales is 38.17%. Gross profit is calculated as sales revenue minus the cost of goods sold. Using the information given, we can calculate the gross profit as follows: Gross Profit = Sales - Cost of Goods Sold Gross Profit = 18,600 - 11,500 Gross Profit = 7,100 The percentage of gross profit to sales can then be calculated using the following formula: Gross Profit Percentage = (Gross Profit / Sales) x 100% Gross Profit Percentage = (7,100 / 18,600) x 100% Gross Profit Percentage = 38.17% Therefore, the percentage of gross profit to sales is 38.17%. This means that for every $1 of sales revenue, the company makes a gross profit of $0.38.