Olly Company is a merchandising business that sells dog food.Based on the following information,what is the gross margin for Olly Company?
$\begin{array}{lr}
\text { Sales Revenue } & \$ 500,000 \
\text { Cash } & 100,000 \
\text { Accounts Receivable } & 50,000 \
\text { Inventory } & 25,000 \
\text { Cost of goods sold } & 300,000 \
\text { Operating expenses } & 40,000
\end{array}$

Question

Quizplus · Accepted Answer

Gross margin is calculated as Sales Revenue minus Cost of Goods Sold, which is $500,000 - $300,000 = $200,000.

Olly Company Is a Merchandising Business That Sells Dog Food