Dallas Company had NET sales of $800,000 for the year, cost of goods sold of $400,000, and interest expense of $100,000 for last year. What is the Gross Profit if sales were $1,000,000 for the current year if the relationships remain the same?

Here you want to make the relationship between the years. Year 1 400,000/800,000 = 50%

Year 2 the same relation ship of 50% is used .