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Compute the gross profit percentage

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Reference no: EM132694678

Problem - During the current year, merchandise is sold for $31,850,000. The cost of the merchandise sold is $24,206,000.

a. What is the amount of the gross profit?

b. Compute the gross profit percentage (gross profit divided by sales).

c. Will the income statement necessarily report a net income? Explain.

Reference no: EM132694678

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