Answer:
Cost of goods sold = $35,700
Explanation:
Gross Profit margin: It the ratio of gross profit to total revenue earned during the period.
Gross Profit Margin = [tex]\frac{Gross Profit}{Net Sales}[/tex]×100
Given,
Gross Profit margin = 15% = 0.15
Net Sales = $42,000
Substituting the values,
0.15 = [tex]\frac{Gross Profit}{$42,000}[/tex]
0.15×$42,000 = Gross Profit
Gross Profit = $6,300
Now,
Gross Profit = Net Sales - Cost of goods sold
Substituting the values,
$6,300 = $42,000 - Cost of goods sold
Cost of goods sold = $42,000 - $6,300
Cost of goods sold = $35,700
