If revenue is $800 and gross margin is $320, what is the cost of goods sold (COGS)?

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Multiple Choice

If revenue is $800 and gross margin is $320, what is the cost of goods sold (COGS)?

Explanation:
Gross margin shows how much revenue remains after covering the cost of goods sold. It’s calculated as revenue minus COGS, so to find COGS you subtract the gross margin from revenue. With revenue of 800 and gross margin of 320, COGS = 800 − 320 = 480. The cost of goods sold is 480.

Gross margin shows how much revenue remains after covering the cost of goods sold. It’s calculated as revenue minus COGS, so to find COGS you subtract the gross margin from revenue. With revenue of 800 and gross margin of 320, COGS = 800 − 320 = 480. The cost of goods sold is 480.

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