Suppose you make a beautiful coffee table out of Jupiter trees. Your materials costhe materials cost for each table is $135. You pay your Craftsman $25 per hour and it takes him 5 hours to complete one table. If you sell those tables for $689 what is your cost of good sold percentage

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Suppose you make a beautiful coffee table out of Jupiter trees. Your materials costhe materials cost for each table is $135. You pay your Craftsman $25 per hour and it takes him 5 hours to complete one table. If you sell those tables for $689 what is your cost of good sold percentage
Expert Solution
Introduction:

Material cost is the cost of producing or purchasing the material to make the final product.

Labor cost is the cost of producing the final product.

Cost of goods sold is the total direct cost of producing the final product.

Selling price is the price at which the final product is sold in the market.

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What is the Gross Profit Margin on the coffee tables described in question 1 above? 

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