question archive Lou's Tavern recorded $60,000 in sales revenue and a cost of goods sold of $45,000 on their income statement this month
Lou's Tavern recorded $60,000 in sales revenue and a cost of goods sold of $45,000 on their income statement this month
Subject:FinancePrice:2.87 Bought7
Lou's Tavern recorded $60,000 in sales revenue and a cost of goods sold of $45,000 on their income statement this month. What is their Gross Profit Margin? (enter your answer as a decimal and round to the nearest hundredth, example x.xx)
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
Sales Revenue = $60,000,
Cost of Goods Sold = $45,000,
Gross Profit = (Sales Revenue - Cost of goods Sold) / Sales Revenue,
=( $60,000 - $45,000) / $60,000
=$15,000 / $60,000.
Gross Profit Margin = 0.25%.
