Question

Twenty years ago, a family purchased a vacant lot for $26,500. they made no improvements during the time they owned the property. recently, they sold the lot for $62,275. what was their percentage of gross profit?

Answer 1

To find the gross profit margin found by:
(revenue - cost of goods sold)/revenue

Revenue = $62,275
Cost of goods sold (purchase price) = $26,500

= (62,275 - 26,500)/62,275
= 35,775/62,275
= 0.57 x 100
Percentage of gross profit = 57%

Answer 2

The percentage of gross profit is 57%.

Step-by-step explanation:

This problem requires us to calculate the percentage of gross profit. Cost of item sold and its sale price is given in the question. Detail calculation is given below.

First calculating Gross profit

Gross profit = 62,275 - 26,500 = $ 35,775

Gross profit percentage = Gross profit/Sales * 100

= 35,775/62,275 * 100 = 57%