Evergreen's most popular product sells for $33.00 and has a variable cost of $26.40.On Evergreen's income statement the cost of goods sold per

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated by subtracting the variable cost from the selling price.

Selling price = $33.00 
Variable cost = $26.40

Cost of goods sold = Selling price - Variable cost 
Cost of goods sold = $33.00 - $26.40 
Cost of goods sold = $6.60

To calculate the cost of goods sold as a percentage of the selling price:

Cost of goods sold percentage = (Cost of goods sold / Selling price) x 100% 
Cost of goods sold percentage = ($6.60 / $33.00) x 100% 
Cost of goods sold percentage = 20%

Therefore, the answer is B) 35%; 25%.

Evergreen's Most Popular Product Sells for $33