Blue Water Inc. had a gross margin for the month of February totalling $92,000. The company sold 6,000 units during the month at a sales price of $30 per unit. What was the amount of cost of goods sold for the month?

Question

Quizplus · Accepted Answer

First, we need to calculate the total sales revenue for the month of February.

Sales revenue = sales price per unit x number of units sold 
Sales revenue = $30 x 6,000 
Sales revenue = $180,000

Next, we can use the formula for calculating cost of goods sold:

Cost of goods sold = sales revenue - gross margin 
Cost of goods sold = $180,000 - $92,000 
Cost of goods sold = $88,000

Therefore, the answer is B, $88,000.