In: Finance
Calculate the gross margin in dollars and percentage for the home department if:
Net sales = 140,000
Billed cost of merchandise = $84,000
Cost discount = 7.5%
Shipping charges = $240
Gross Margin is computed as follows:
= Net sales - (Billed cost of merchandise) x (1 - cost discount) - shipping charges
= $ 140,000 - $ 84,000 x 0.925 - $ 240
= $ 62,060
% is computed as follows:
= Gross Margin / Sales
= $ 62,060 / $ 140,000
= 44.33% Approximately