Facts. . .(entered in black) fill in first (this is the given information from the problem) 15t year = sales were $450K I 4.5% profit = (450K x 4.5% = $20,250 net profit) Oper. Expenses: 40.5% (or $450k x 40.5% = $182,250 oper. Expenses) Net profit entered in blue. . .Operating expenses entered in red.. .Cost of Goods entered in green. .Gross Profit entered in purple % % Net Sales = $450K 100% 481,500K 100% COG: -247 500 55% Gross Profit: 202,500 45% Oper Exp 2 182,250 40.5% Net Profit: 20,250 4.5% Find COG: $450K (net sales) - $20,250 (net profit) - 182,250 (oper. Exp) = $247,500 (COG) $247,500 -2- $450K = 55% Subtract : Net Sales COG = gross prot or margin $450K - $247,500 = $202,500