Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%;
Gross profit margin = 70%
A)$40,000
B)$35,000
C)$15,000
D)$10,000

Question

Quizplus · Accepted Answer

The gross profit margin is 70%, which means the cost of goods sold (COGS) is 30% of revenues. Therefore, COGS = 30% of $50,000 = $15,000.

Determine the Cost of Goods Sold for a Venture with the Following