Carpenter, Inc. generated sales revenues of $1,400,000 in 2019. Its cost of goods sold amounted to $560,000. Calculate Carpenter's gross profit percentage.

A) 40%
B) 60%
C) 167%
D) 250%


B) 60%

Explanation: Gross profit = Sales revenue - Cost of goods sold = $1,400,000 - $560,000 = $840,000
Gross profit percentage = Gross profit / Sales revenue = $840,000 / $1,400,000 = 60%

Business

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