Question

The following is Talley Company's income statement for the past year. Sales revenue Cost of goods sold 324,000 Gross margin Operating expenses 126,000 Operating income $90,000 $540,000 216,000 what is the markup percentage on cost of goods sold? (Round answer to 0 decimal places, e.g 45%.) Markup percentage what is the markup percentage on total cost? (Round answer to 0 decimal places, e.g 45%.) Markup percentage What is the gross margin percentage? (Round answer to 0 decimal places, e.g 45%.) Gross margin percentage

Answer 1

Markup percentage on cost of goods sold = ( Sales - Cost of goods sold ) / Sales

Markup percentage on cost of goods sold = (( 540,000 - 324,000 ) / 540,000 ) x 100

Markup percentage on cost of goods sold = ( 216,000 / 540,000 ) x 100

Markup percentage on cost of goods sold = 0.40 x 100

Markup percentage on cost of goods sold = 40%

Total Cost = $324,000 + $126,000 = $450,000

Markup percentage on total cost = (( Sales - total cost ) / Sales ) x 100

Markup percentage on total cost = (( 540,000 - 450,000 ) / 540,000 ) x 100

Markup percentage on total cost = ( 90,000 / 540,000 ) x 100

Markup percentage on total cost = 0.1667 x 100

Markup percentage on total cost = 16.67%%

Gross Margin Percentage = ( Gross profit / Sales ) x 100

Gross Margin Percentage = ( 216,000 / 540,000 ) x 100

Gross Margin Percentage = 0.4 x 100

Gross Margin Percentage = 40%