Carpenter, Inc. generated sales revenues of $1,400,000 in 2019. Its cost of goods sold amounted to Calculate Carpenter's gross profit percentage. $$\$ 560,000$$

Question

Quizplus · Accepted Answer

To calculate gross profit percentage, we need to use the formula:
Gross Profit Percentage = (Gross Profit / Sales Revenue) x 100%
First, we need to calculate gross profit, which is:
Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $1,400,000 - $840,000 (assuming a 60% gross profit margin)
Gross Profit = $560,000

Now, we can calculate gross profit percentage:
Gross Profit Percentage = ($560,000 / $1,400,000) x 100%
Gross Profit Percentage = 40%

Therefore, the correct answer is option B, 60%.

Carpenter, Inc $560,000\$ 560,000$560,000 A) 40% B) 60% C) 167% D) 250

Carpenter, Inc $\$ 560,000$ A) 40%
B) 60%
C) 167%
D) 250