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What is Cream Company about?

The Cream Company had a net profit of P750,000 for the initial year of operations. Selling expenses were 12.5% of sales and 25% of cost of goods sold. Administrative expenses were 17.5% of sales and other expenses were 5% of sales. To calculate gross profit, the information is used to determine that cost of goods sold was 50% of sales. Gross profit is then calculated as 50% of sales of P5,000,000, which equals P2,500,000.

Author

Parvana Namikaze

Language

EN