It reported an increase in net sales from $5.3 B in 2017 to $5.5 B in 2018, and an increase in gross profit from $1.2 B in 2017 to $1.3 B in 2018.Calculate each year’s gross profit %

Answer 1

gross profit % = (gross profit/sales) x100

***You multiply by 100 to get the number into % format

2017

gross profit % = (1.2/5.3) x100

=22.64%

****You don't have to add all the zeros to show the actual billion amounts. The zeros cancel each other out in the division portion of the calculation.

2018

gross profit % = (1.3/5.5) x100

=23.64%