Ask Question
29 May, 10:19

Merchandisers buy products and resell them. Examples of merchandisers include Walmart and Home Depot. A merchandiser's costs on the income statement include the cost of goods sold. Gross profit, or gross margin, equals sales minus cost of goods sold. True or false?

+4
Answers (1)
  1. 29 May, 13:52
    0
    True

    Explanation:

    The formula to compute the gross profit or gross margin is shown below:

    As we know that

    The gross profit equals to

    Gross profit = Sales revenue - cost of goods sold

    And, the cost of goods sold equals yo

    Cost of goods sold = Opening stock + purchase - closing stock

    So after deducting the cost of goods sold from the sales revenue we can get the gross profit or gross margin

    Hence, the given statement is true
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Merchandisers buy products and resell them. Examples of merchandisers include Walmart and Home Depot. A merchandiser's costs on the income ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers