Mathematics

Question

Last year, Sally had a gross profit margin of 68% in her hair salon. Her gross profit was $32,508.63. How much did Sally make in net sales last year?
a.
$16,398.06
b.
$22,105.87
c.
$35,610.25
d.
$47,806.81

2 Answer

  • A business' profit margin is the ratio between the gross profit and net sales. It's ideal for a business to have a profit margin closest to 1. For the given situation, Sally has a gross profit of $32, 508.63 and a profit margin of 68% or 0.68. Thus, we have 

    [tex] 0.68 = \frac{32508.63}{sales} [/tex]
    [tex] sales = \frac{32508.63}{0.68} = 47806.81 [/tex]

    Therefore,  the net sales earned by Sally's hair salon is $47, 806.81. 

    Answer: D. $ 47, 806.81

  • Answer:

    $47,806.81 (D)

    Step-by-step explanation:

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