The income statement of Cadmium Inc., for the month of January of the current year is as follows: $\begin{array}{lr}
\text { Revenues }&&\$12,000\
\text { Cost of goods sold: }\
\text { Direct materials } & \$ 6,000 \
\text { Direct labor } & 4,000 \
\text { Overhead } & 2,000&\$12,000\
\text { Gross profit } && \$ 9,000 \
\text { Selling and administrative expenses } && 2,000 \
\text { Onerating income } && \$ 7,000
\end{array}$
Determine the markup based on cost of goods sold (COGS).

Question

Quizplus · Accepted Answer

Markup based on COGS = (Selling price - COGS) / COGS= (12,000 - 12,000) / 12,000= 0 / 12,000= 0= 0%

The Income Statement of Cadmium Inc Determine the Markup Based on Cost of Goods Sold (COGS)