Question

a company has a net sales revenue of $250,000 its cost of goods sold is $180,000 using vertical analysis what percentage of its revenue is spent on its goods? A. 7.20%B. 72%C. 13%D. 1.30%

Answer 1

To find what percentage of its revenue is spent on its goods, we just have to divide the cost of goods sold by the revenue value and then multiply by 100. The result will be the desired percentual value.

`(180,000)/(250,000)*100=(72)/(100)=72\%`

The answer is option B.