If a company has net sales of $700,000 and cost of goods sold of $455,000, the gross profit percentage is
A) 25%.
B) 35%.
C) 65%.
D) 100%.

Question

Quizplus · Accepted Answer

The formula for gross profit percentage is (Net sales - Cost of goods sold) / Net sales x 100%.

Plugging in the numbers, we get (700,000 - 455,000) / 700,000 x 100% = 245,000 / 700,000 x 100% = 35%.

Therefore, the correct answer is B) 35%.

If a Company Has Net Sales of $700,000 and Cost