Gross Profit Rinser Corporation reported total sales of $540,000 for the current period. Rinser had $95,000 of inventory on hand at the start of the period and $125,000 at the end of the period. A total of $360,000 of inventory was purchased by Rinser during the period.

a. Compute the gross profit on Rinser’s sales.

b. Compute the gross profit percentage on Rinser’s sales.