Question

1. A gross profit percentage of 50% on sales was applied during the year. what is cost of sale? if sale is 403 700

Answer 1

To calculate the cost of sales given a gross profit percentage and sales amount, you can use the following formulas:

1. **Gross Profit** = Gross Profit Percentage × Sales
2. **Cost of Sales** = Sales - Gross Profit

Let's apply this to your numbers:

1. **Calculate Gross Profit:**
\[
\text{Gross Profit} = 50\% \times 403,700 = 0.50 \times 403,700 = 201,850
\]

2. **Calculate Cost of Sales:**
\[
\text{Cost of Sales} = \text{Sales} - \text{Gross Profit} = 403,700 - 201,850 = 201,850
\]

So, the cost of sales is **$201,850**.