roboticfuture01 roboticfuture01

08-12-2021
Business

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The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

Direct Materials processed: 29,500 gallons

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Tundexi Tundexi

21-12-2021

The Gross Margin Percentage is 31.62%.

Sales Price = (14,000 gallon*$3.5 + 15,500 gallon*$6)

Sales Price = $49,000 + $93,000

Sales Price = $142,000

Total Processing Costs = $49,000

Separable Costs = $13500 + $34600

Separable Costs = $48,100

Gross profit = Sales Price - Total - Processing Costs- Separable Costs

Gross profit = $142,000 - $49,000 - $48,100

Gross profit = $44,900

Gross Margin Percentage = Gross profit/Sales Price * 100

Gross Margin Percentage = $44900 / $142000 * 100

Gross Margin Percentage = 31.62%

Therefore, the Gross Margin Percentage is 31.62%.

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