For the quarter ended January 28, 2017, Kroger reported sales of $27.61 billion and cost of goods sold of $21.4 7 billion. What was the company’s gross profit margin that quarter?
To discuss:
Compute company’s gross margin in the quarter.
Introduction:
Gross profit margin also called as gross margin depicts the percentage of sale revenue after the deduction of direct costs.
Answer to Problem 1OR
The gross margin of K Company in the quarter is 0.2224 or 22.24%.
Explanation of Solution
Given information:
K Company has sales of $27061 billion and the cost of goods sold is 21.47 billion.
The formula to calculate the gross margin:
Hence, the gross margin of K Company in that quarter is 0.2224 or 22.24%.
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Chapter 3 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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