Question

Express cost of goods sold as a common-size percentage using the following data. Sales - $45,000; cost of goods sold - $29,340; gross profit from sales - $15,660; operating expenses - $10,800; net income - $4,860.
a. 100%
b. 31%
c. 12%
d. 10.8%

Answer 1

Answer:

Cost of goods sold as a common size percentage= 65.2  %

Explanation:

Cost of goods sold as common size percentage implies the cost of goods sold in absolute is expressed as proportion of the absolute value of Revenue expressed as percentage.

Using the data above = cost of goods sold/Revenue × 100

           = 29,340/45,000× 100

          =65.2  %

Cost of goods sold as a common size percentage=65.2  %