Question

Cogs of $53,500 and GM of 50% what is net sales

Answer 1

The net sales amount to $107,000 when the cost of goods sold is $53,500 and the gross margin percentage is 50%. The calculation is based on the formula: 0.50 x Net Sales = Net Sales - COGS.

Step-by-step explanation:

To calculate the net sales when the cost of goods sold (COGS) is $53,500 and the gross margin (GM) percentage is 50%, you would use the following relationship:

Gross Margin (in dollars) = Net Sales - COGS

Since Gross Margin is also expressed as a percentage of Net Sales, we can rewrite this relationship as:

Gross Margin (%) = (Net Sales - COGS) / Net Sales

Given that the Gross Margin is 50%, the equation would be:

0.50 = (Net Sales - $53,500) / Net Sales

This can be rearranged to solve for Net Sales:

0.50 × Net Sales = Net Sales - $53,500

Net Sales - 0.50 × Net Sales = $53,500

0.50 × Net Sales = $53,500

Net Sales = $53,500 / 0.50

Net Sales = $107,000

Therefore, the net sales amount to $107,000 when the COGS is $53,500 and the GM is 50%.

Answer 2

The net sales amount to $107,000.

To calculate the net sales, we need to determine the cost of goods sold (COGS) and the gross margin (GM). The net sales can be found by subtracting the gross profit from the COGS.

The COGS is given as $53,500, which represents the direct costs involved in producing or acquiring the goods.

The GM is given as 50%, which means that the gross profit is half of the net sales.

GM =
`(Net Sales - COGS)/(Net Sales)`

Net Sales =
`(COGS)/(1-GM)`

=
`(53500)/(1-0.5)`

=
`(53500)/(0.5)`

= 107000

Therefore, the net sales amount to a total of $107,000 for COGS of $53,500 and GM of 50%.