D gelelany uau 26 Carpenter Inc generated sales revenues of

D) gelelany uau 26) Carpenter, Inc generated sales revenues of $1,400,000 in 2019. Its cost of goods sold amounted 26) to $560000 Calculate Carpenter\'s gross profit percentage. A) 60% B) 167% C) 40% D) 250%

Solution

Gross Profit Ratio = (Sales - Cost of Goods Sold) / Sales Sales = $14,00,000 Less: \"-\" Cost of Goods Sold = $5,60,000 = \"= \" Gross Profit $8,40,000 Divide by \"/\" By Sales $14,00,000 Gross Profit Ratio =                              0.60 Gross Profit Ratio in percentage= 60% Answer = Option A = 60%