Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales what is the gross profit? net profit = 0.1 x 12500 = 1250 gross profit = sales -...
Question 1 Report
Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales what is the gross profit?
net profit = 0.1 x 12500 = 1250
gross profit = sales - cogs
net profit = gross profit - expenses
1250 + 2500
Answer Details
The formula for calculating gross profit is Sales - Cost of Goods Sold (COGS). However, the question does not provide the COGS figure. So, we can use the formula for calculating net profit which is Net Profit = Gross Profit - Total Expenses. We are given that Net Profit is 10% of Sales, which means Net Profit = 0.1 x Sales. So, we can substitute the given values to get:
1250 = Gross Profit - 2500
Solving for Gross Profit, we get:
Gross Profit = 1250 + 2500 = 3750
Therefore, the gross profit is D3,750.
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