Question

A company has net sales of $799,500 and cost of goods sold of $577,500. its net income is $28,910. the company's gross margin and operating expenses, respectively, are:

Answer 1

Given:
net sales of $799,500
cost of goods sold of $577,500.
net income is $28,910

Net Income statement has the following form:
Sales                xxx
less: COGS     (xxx)
Gross margin   xxx
less: OpEx       (xxx)
Net Income      xxx

Gross margin = Sales - Cost of Goods Sold
Gross margin = 799,500 - 577,500
Gross margin = 222,000

Operating Expense = Gross Margin - Net Income
Operating Expense = 222,000 - 28,910
Operating Expense = 193,090


The company's gross margin and operating expenses, respectively, are: 222,000 and 193,090