Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit to sales)?

Name: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit to sales)?
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Question

Quizplus · Accepted Answer

Gross profit is calculated as sales minus cost of goods sold, which is $320,000 - $112,000 = $208,000. The gross profit margin is then calculated as (Gross Profit / Sales) * 100 = ($208,000 / $320,000) * 100 = 65%.

Candy Company Had Sales of $320,000 and Cost of Goods