Calculate the average percentage cost of goods sold for the top three competitors of a business when the cost advantage index of the business is 120 and the percentage cost of goods sold by the business is 60%.
A)120
B)53.22
C)50
D)80
E)42

Question

Quizplus · Accepted Answer

The cost advantage index is calculated as (Average COGS of competitors / COGS of the business) * 100. Given the index is 120 and the business's COGS is 60%, the equation is (Average COGS / 60) * 100 = 120. Solving for Average COGS gives 50%.

Calculate the Average Percentage Cost of Goods Sold for the Top