Katz Group had the following income statement for the month of May.
$\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the cost of goods sold percentage?
A)19%
B)48%
C)52%
D)100%

Question

Katz Group had the following income statement for the month of May.
 $\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the cost of goods sold percentage?
A)19%
B)48%
C)52%
D)100%

Quizplus · Accepted Answer

The cost of goods sold percentage is calculated by dividing the cost of goods sold by the sales revenue and then multiplying by 100 to get a percentage. So, $ \frac{205,440}{428,000} \times 100 = 48\%$.

Katz Group Had the Following Income Statement for the Month