Question

if sales = 800,000 and markup is 25% of cost calculate cost of goods sold and gross profit margin​

Answer 1

Explanation:

If cost of goods sold is 100 %

then selling price is 125%

sales are 8,00,000

Cost selling price

100 125

? 8,00,000

Gross profit margin = 8,00,000×25/125= 160000

cost of goods sold = Sales - gross profit

= 8,00,000 - 160,000

Cost of goods sold is 6,40,000