Gage Company had the following information: $$\begin{array} { l r }
\text { Revenues }& \$ 600,000 \
\text { Cost of goods sold } & 60 \% \
\text { Selling and adrinistrative expenses } & \$ 130,000
\end{array}$$ What is the markup on cost of goods sold?
A)0.1833
B)0.3611
C)0.6667
D)0.7667

Question

Gage Company had the following information: $$\begin{array} { l r } 
\text { Revenues }& \$ 600,000 \
\text { Cost of goods sold } & 60 \% \
\text { Selling and adrinistrative expenses } & \$ 130,000
\end{array}$$ What is the markup on cost of goods sold?
A)0.1833
B)0.3611
C)0.6667
D)0.7667

Quizplus · Accepted Answer

The markup on cost of goods sold is calculated as (Revenues - Cost of Goods Sold) / Cost of Goods Sold. Here, Cost of Goods Sold is 60% of $600,000, which is $360,000. The markup is ($600,000 - $360,000) / $360,000 = $240,000 / $360,000 = 0.6667.

Gage Company Had the Following Information What Is the Markup on Cost of Goods Sold? A)0

Gage Company Had the Following Information What Is the Markup on Cost of Goods Sold?
A)0