Efficiency ratio: Ellicott City Manufacturers, Inc., has sales of $6,344,210, and a gross profit margin of 67.3 percent. What is the firm's cost of goods sold?

Question

Quizplus · Accepted Answer

The gross profit margin is 67.3%, meaning the gross profit is 67.3% of sales. Therefore, the cost of goods sold (COGS) is the remaining percentage of sales, which is 32.7%. Calculating COGS: $6,344,210 * (1 - 0.673) = $2,074,557.

Efficiency Ratio: Ellicott City Manufacturers, Inc