Carpenter Company generated sales revenues of $1,000,000 in 2019.Its cost of goods sold amounted to $\$ 600,000$ Calculate Carpenter's gross profit percentage.
A) 60%
B) 40%
C) 250%
D) 167%

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Sales Revenue - Cost of Goods Sold) / Sales Revenue * 100. For Carpenter Company, this is ($1,000,000 - $600,000) / $1,000,000 * 100 = 40%.

Carpenter Company Generated Sales Revenues of $1,000,000 in 2019 $600,000\$ 600,000$600,000

Carpenter Company Generated Sales Revenues of $1,000,000 in 2019 $\$ 600,000$