Question
Jane Doe's Travel is a retail store for those customers who prefer travelling with high quality luggage and travel accessories. Last year its net sales
Jane Doe's Travel is a retail store for those customers who prefer travelling with high quality luggage and travel accessories. Last year its net sales totaled $120,500. The cost value of the items sold was $72,300. Taxes for the year were $7,680. The only expenses that the operation had were (1) rent for $200, (2) salaries to the owner and one part-time assistant for $22,000, (3) administrative expenses of $200, and (4) utilities at $1,300.
1) Calculate the gross margin.
2) Calculate the net profit before tax.
3) Calculate the net profit margin for John's luggage.
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