The following is Talley Company's income statement for the past year. Sales revenue Cost of goods sold 324,000 Gross margin Operating expenses 126,000 Operating income $90,000 $540,000 216,000 what is the markup percentage on cost of goods sold? (Round answer to 0 decimal places, e. g 45%.) Markup percentage what is the markup percentage on total cost? (Round answer to 0 decimal places, e. g 45%.) Markup percentage What is the gross margin percentage? (Round answer to 0 decimal places, e. g 45%.) Gross margin percentage

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Business

Theresa Morrison

23 September, 16:36

The following is Talley Company's income statement for the past year. Sales revenue Cost of goods sold 324,000 Gross margin Operating expenses 126,000 Operating income $90,000 $540,000 216,000 what is the markup percentage on cost of goods sold? (Round answer to 0 decimal places, e. g 45%.) Markup percentage what is the markup percentage on total cost? (Round answer to 0 decimal places, e. g 45%.) Markup percentage What is the gross margin percentage? (Round answer to 0 decimal places, e. g 45%.) Gross margin percentage

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Paula Hall · Answer 1

Markup percentage on cost of goods sold = (Sales - Cost of goods sold) / Sales

Markup percentage on cost of goods sold = ((540,000 - 324,000) / 540,000) x 100

Markup percentage on cost of goods sold = (216,000 / 540,000) x 100

Markup percentage on cost of goods sold = 0.40 x 100

Markup percentage on cost of goods sold = 40%

Total Cost = $324,000 + $126,000 = $450,000

Markup percentage on total cost = ((Sales - total cost) / Sales) x 100

Markup percentage on total cost = ((540,000 - 450,000) / 540,000) x 100

Markup percentage on total cost = (90,000 / 540,000) x 100

Markup percentage on total cost = 0.1667 x 100

Markup percentage on total cost = 16.67%%

Gross Margin Percentage = (Gross profit / Sales) x 100

Gross Margin Percentage = (216,000 / 540,000) x 100

Gross Margin Percentage = 0.4 x 100

Gross Margin Percentage = 40%