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    Question

    A company has sales ₹50,00,000 and gross profit margin

    40% (on sales). Cost of goods sold (COGS) is:
    A ₹20,00,000 Correct Answer Incorrect Answer
    B ₹30,00,000 Correct Answer Incorrect Answer
    C ₹35,00,000 Correct Answer Incorrect Answer
    D ₹40,00,000 Correct Answer Incorrect Answer

    Solution

    Gross Profit = 40% of ₹50,00,000 = ₹20,00,000. COGS = Sales − Gross Profit = 50,00,000 − 20,00,000 = ₹30,00,000.

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