This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Lab Assignment #4 Please complete the following problems in Microsoft Word and upload as a .doc file to Moodle. This assignment is due prior to your lab starting next week. Where indicated, please create and format a table for the information. Please type your work and show the formulas used. Each question is worth 2 points. 1. This year for the Fall period your entire department your entire department was estimated to produce a gross margin of $618,750 because the expenses were estimated at $562,500. The projected net profit for the period was set at 4%. a. What gross margin percentage was required to achieve the desired profit? 618750-562600=56250 (gross margin) X.04 = 2250 + 56250= 58500 56250/58500= 96% b. What operating expenses percentage had to be maintained to achieve these results? 5% 2. Express the gross margin as a percentage if: Gross Sales: $283,000 Customer Returns: $7,000 Billed Cost of Goods: $137,000 Inward Freight: $5,000 Workroom Charges: $3,000 Cash Discounts: 6% 283000-7000= 276000 (net sales)-137000= 139000 (GM)...
View Full Document
- Fall '10
- Revenue, Expenses, gross margin, Net Sales, operating expenses