Revenue Is $400,000 and Cost of Goods Sold Is $320,000

question 138

Multiple Choice

Revenue is $400,000 and Cost of goods sold is $320,000.How much is the gross profit percent?

• A) 75%
• B) 20%
• C) 60%
• D) 80%

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Definitions:

Operating Expenses

Expenses incurred from the normal operations of a business, excluding the cost of goods sold, such as rent, salaries, and utilities.

Sales Revenue

The income received by a company from its sales of goods or services before any costs or expenses are deducted.

Gross Profit Percentage

A financial metric that shows the portion of sales revenue that exceeds the cost of goods sold, expressed as a percentage.

Net Sales

The net income from sales a business secures, after subtracting the expenses for returned products, allowances for damaged or missing merchandise, and any granted discounts.