Cost of goods sold in 2017 for Reno Parts Company totaled $4,530,000.If the gross margin percentage is 56%, how much are sales ?

Question

Quizplus · Accepted Answer

The gross margin percentage is calculated as (Sales - Cost of Goods Sold) / Sales. Given a gross margin percentage of 56% and a cost of goods sold of $4,530,000, we can set up the equation 0.56 = (Sales - 4,530,000) / Sales. Solving for Sales gives us $10,295,454.

Cost of Goods Sold in 2017 for Reno Parts Company