Question

Gilbert Company generated sales revenues of $1,800,000 in 2017. Its cost of goods sold amounted to $990,000. Calculate Gilbert's gross profit percentage. Supporting Materials Cost of goods sold / Group of answer choices 55% 45% 222% 182%

Answer 1

45%

Step-by-step explanation:

The computation of the gross profit percentage is shown below:

As we know that

Gross profit percentage = Gross profit ÷ Sale revenue × 100

where,

Gross profit is

= Sales revenue - the cost of goods sold

= $1,800,000 - $990,000

= $810,000

And, the sales revenue is $1,800,000

So, the gross profit percentage is

= $810,000 ÷ $1,800,000

= 45%

Hence, the gross profit percentage is 45%