Income statement information for Sadie Company is below:
Sales $175,000
Cost of goods sold 115,000
Gross profit $ 60,000
1. Using vertical analysis of the income statement for Sadie Company, determine the gross profit margin.

34.285%

Explanation:

                                      Income Statement :                                

Particular                                                           Amount

Sales                                                                 $175,000

Less: Cost of goods sold                                 $115,000

Gross profit                                                       $ 60,000

Gross profit Margin = [(Net Sales - cost of goods sold) / Net Sales]100

Gross profit Margin = [($175,000 - $115,000) / $175,000] 100

Gross profit Margin = [$60,000 / $175,000]100

Gross profit Margin = [0.34285]100

Gross profit Margin = 34.285%

answer; post closing trial balance;

answer/// equals both average variable cost and average total cost at their respective minimums;