What formula is used to find the COGU percentage?

The correct formula to find the COGU percentage is obtained by dividing the Cost of Goods Used (COGU) by store sales. This relationship helps quantify the proportion of sales that is represented by the cost of goods that have been sold, providing insight into the business's cost structure and profitability.

When calculating this percentage, the COGU represents the direct costs attributable to the production of the goods sold by the company during a specific period, while store sales represent total revenue from those sales. By dividing COGU by store sales, you derive a percentage that illustrates how much of each dollar earned in sales goes towards covering the costs of the goods sold, which is crucial for financial analysis and inventory management.

Understanding this percentage assists businesses in making informed decisions related to pricing, cost control, and overall financial health. This calculation is essential for evaluating operational efficiency and ensuring that the business remains profitable.