Question

Mussa Corporation reports the following​ data: Net sales $280,000 Cost of goods sold 180,000 Gross profit $100,000 In vertical​ analysis, the cost of goods sold percentage is closest​ to:A 63%. B. 170%. c. 37%. D, 59%.

Answer 1

Answer:

cost of goods sold percentage  =  63%

so correct option is A 63%

Explanation:

given data

Net sales = $280,000

Cost of goods sold = 180,000

Gross profit = $100,000

to find out

cost of goods sold percentage

solution

we get here cost of goods sold percentage that is express as

cost of goods sold percentage  = $\frac{Cost\ of\ goods\ sold}{net\ sale}$   ............1

put here value we get

cost of goods sold percentage  =  $\frac{180000}{280000}$

cost of goods sold percentage  = 0.6424 = 0.63

cost of goods sold percentage  =  63%

so correct option is A 63%