Gilbert Inc. generated sales revenues of $1,000,000 in the year 2015. Its cost of goods sold amounted to $400,000. Calculate Gilbert's gross profit percentage.
A)40%
B)60%
C)167%
D)250%

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated by subtracting cost of goods sold from sales revenues and then dividing the result by sales revenues, and multiplying by 100 to get a percentage.

Gross profit percentage = (Sales revenues - Cost of goods sold) / Sales revenues x 100 
= ($1,000,000 - $400,000) / $1,000,000 x 100 
= $600,000 / $1,000,000 x 100 
= 60%

Therefore, the answer is choice B.