Question

A company has net sales of $821,400 and cost of goods sold of $593,400. Its net income is $34,160. The company's gross margin and operating expenses, respectively, are:

Answer 1

$228,000.00 and $193,840.00

Step-by-step explanation:

Gross profit is the gain from business transactions before adjusting for operating expenses. It is obtained by deducting the direct cost from net sales. The Cost of Goods sold represents direct expenses.

In this case:

Gross profit = Net sales - COGS

Gross profit = $821,400 - $593,400

Gross profit =$228,000.00

Calculating operating expenses:

Gross profit - operating expenses = net income

In this case, gross profits = $228,000 , net income = $34,160

i.e.,$228,000 -Operating expenses =$34,160

Operating expences = $228,000 - $34,160

operating expences = $193,840.00