Given the following information from a profit-and-loss statement, determine the gross margin percentage: Net sales: $80,000, Net profit: $5,000, Cost of goods sold: $45,000.

To determine the gross margin percentage, it's essential to first calculate the gross profit. Gross profit is derived from net sales minus the cost of goods sold (COGS).

In this scenario, the net sales amount to $80,000 and the cost of goods sold is $45,000. The calculation for gross profit is as follows:

Gross Profit = Net Sales - COGS

Gross Profit = $80,000 - $45,000 = $35,000

Next, to find the gross margin percentage, the gross profit is divided by net sales and then multiplied by 100 to convert it into a percentage:

Gross Margin Percentage = (Gross Profit / Net Sales) x 100

Gross Margin Percentage = ($35,000 / $80,000) x 100

Gross Margin Percentage = 0.4375 x 100 = 43.75%

When expressed in fractional representation, 43.75% can also be written as 43 3/4%.

This percentage indicates how much of each dollar earned in sales is retained after covering the cost of goods sold, which is crucial for assessing the efficiency and profitability of a restaurant's operations. It shows the portion of sales revenue that exceeds the cost of producing