Revenue is $2,500 and cost of sales is $1,900. What is the gross profit on a vertical analysis of the statement of income?
A) 24%
B) 76%
C) $ 1,900
D) $ 2,500

Question

Quizplus · Accepted Answer

Gross profit is calculated as Revenue minus Cost of Sales, which is $2,500 - $1,900 = $600. In vertical analysis, gross profit percentage is calculated as (Gross Profit / Revenue) * 100 = ($600 / $2,500) * 100 = 24%.

Revenue Is $2,500 and Cost of Sales Is $1,900