question archive This year Tommy's Tee Shops has sales of $40mm and a gross margin of 30%
This year Tommy's Tee Shops has sales of $40mm and a gross margin of 30%
Subject:FinancePrice:2.88 Bought30
This year Tommy's Tee Shops has sales of $40mm and a gross margin of 30%. Next year sales are expected to grow 20% but that's to more efficient manufacturing processes, COGS will only grow 10%. What be next year's gross profit?
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| Current year gross profit =$40*30% | ||||
| = $12 | ||||
| Current year COGS = $40-12 | ||||
| = $28 | ||||
| Next year sale =$40*1.20 | ||||
| = $48 | ||||
| Next yearCOGS = $28*1.10 | ||||
| = $30.8 | ||||
| Gross profit = $48-30.8 | ||||
| = $17.2 |
