If Golf Shop sales are $100,000 and yield a gross margin of $30,000, what is the percent of the cost of goods sold?

To determine the percent of the cost of goods sold, it's important to understand the relationship between sales, gross margin, and cost of goods sold (COGS). The gross margin is defined as the difference between sales and COGS.

In this scenario, if the golf shop has sales of $100,000 and a gross margin of $30,000, we can calculate the COGS by subtracting the gross margin from the total sales:

COGS = Sales - Gross Margin

COGS = $100,000 - $30,000

COGS = $70,000

Next, to find the percent of COGS relative to sales, we use the formula:

Percent of COGS = (COGS / Sales) × 100

Percent of COGS = ($70,000 / $100,000) × 100

Percent of COGS = 70%

Thus, the correct answer indicates that the percentage of the cost of goods sold is 70%. This reflects the proportion of the sales revenue that is used to cover the costs of the products sold, showcasing an important aspect of financial analysis in retail operations.