Carpenter,Inc.generated sales revenues of $1,400,000 in 2019.Its cost of goods sold amounted to Calculate Carpenter's gross profit percentage.
A)40%
B)60%
C)167%
D)250%

Question

Carpenter,Inc.generated sales revenues of $1,400,000 in 2019.Its cost of goods sold amounted to  Calculate Carpenter's gross profit percentage.
A)40% 
B)60% 
C)167% 
D)250%

Quizplus · Accepted Answer

Gross profit = Sales revenue - Cost of goods sold = $1,400,000 - $560,000 = $840,000
Gross profit percentage = Gross profit / Sales revenue = $840,000 / $1,400,000 = 60%