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 margin is calculated as (Sales - Cost of Goods Sold) / Sales. Here, it is ($320,000 - $112,000) / $320,000 = $208,000 / $320,000 = 0.65 or 65%.

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