Question

A retail operation has an average gross margin of 35%. If the average monthly sales for the store is $200,000.00, what is the cost of goods sold?

Answer 1

COGS= $130,000

Step-by-step explanation:

Giving the following information:

A retail operation has an average gross margin of 35%.

Sales= $200,000.00

To calculate the cost of goods sold, we need to use the following formula:

Gross margin= sales - COGS

COGS= sales - gross margin

COGS= 200,000 - (200,000*0.35)

COGS= $130,000