Net sales for the year were $1,100,000 and cost of goods sold was $781,000 for the companys existing products. A new product is presently under development and will have an expected selling price of not more than $69 per unit in order to remain competitive with similar products in the marketplace.

Required:

a.

Calculate gross profit and the gross profit ratio for the year.

Net Sales	$1,100,000	?	%
Cost of Goods Sold	$781,000	?	%
Gross Profits	$319,000	29	%