Bartlow, Inc. had the following income statement for the month of May. Sales revenue$428,000Cost of goods sold205,440Gross margin222,560Less:Selling expenses81,320Administrative expenses72,760Operating income$ 68,480What was the cost of goods sold percent?

Question

Armando Weber

Business

7 September, 18:40

Bartlow, Inc. had the following income statement for the month of May. Sales revenue$428,000Cost of goods sold205,440Gross margin222,560Less:Selling expenses81,320Administrative expenses72,760Operating income$ 68,480What was the cost of goods sold percent?

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Answers (1)

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Edwin Tyler · Answer 1

48%

Explanation:

Cost of Goods Sold percent is simply Cost of Goods sold amount divided by the Sales Revenue amount.

So:

$205,440 / $428,000 = 0.48 or 48%

In general, Cost of Goods Sold is used to determine the difference between business models, especially if they're in the same industry.

One common way investors compare business models is with the Cost of Goods Sold rate or percent, which is Cost of Goods Sold divided by Sales.