What is the percentage of Cost of Goods Sold (COGS) if golf shop sales are $100k and the gross margin is $30k?

To determine the percentage of Cost of Goods Sold (COGS) based on the provided sales and gross margin figures, first, it's important to clarify what the terms mean. Gross margin is the difference between sales and COGS, reflecting the profit made on the cost of goods sold.

In this case, if golf shop sales are $100,000 and the gross margin is $30,000, you can calculate COGS as follows:

1. First, calculate the COGS:

COGS = Sales - Gross Margin

COGS = $100,000 - $30,000

COGS = $70,000

2. Next, to find the percentage of COGS in relation to sales, divide COGS by total sales and then multiply by 100 to convert it to a percentage:

COGS Percentage = (COGS / Sales) × 100

COGS Percentage = ($70,000 / $100,000) × 100

COGS Percentage = 70%

This calculation shows that COGS represents 70% of the total sales. Thus, the correct answer is clearly identified as 70%. This understanding illustrates how to analyze