Based on the information in Table B-2, and given that the gross margin percent is 25%, what is the cost of sales?
A) $75,000.
B) $150,000.
C) $55,000.
D) $12,500.
E) $50,000.

Question

Quizplus · Accepted Answer

As gross margin percent is 25%, it means that the cost of sales is 75% of the total revenue. 
So, the cost of sales can be calculated by multiplying the total revenue by 0.75. 
Cost of sales = $200,000 x 0.75 = $150,000. 
Therefore, the correct answer is B.

Based on the Information in Table B-2, and Given That