
Answer:
Purrfect Pets
The gross profit for the month is:
= $20,180.
The gross profit percentage for the month is:
= 36.11%.
Explanation:
a) Data and Calculations:
Quantity of dog food purchased = 5,100 bags
Cost per bag = $7
Quantity of dog food sold = 5,100 bags
Sales price per bag = $11
Sales revenue                $56,100 ($5,100 * $11)
Less Sales allowances             220
Net Sales                    $55,880
Cost of goods (dog food) sold    35,700 (5,100 *$7)
Gross profit                  $20,180
Discounts (2,100 * $11 * 1%) Â Â Â Â Â Â Â Â 231
Net operating income         $19,949
Gross profit percentage = Gross profit/Net Sales * 100
= $20,180/$55,880 * 100
= 36.11%