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What will be the ratio of dividing COGS? Since Sales has increased do we need to take COGS in proportion of Sales.
Answers (4)
firstly, find out the sales ratio and then to calculate total income: - you can divide the sales and COGS separately in sales ratio, or - calculate (sales - COGS) you'll get gross profit i.e. (sales-COGS=GP) and then divide GP in sales ratio both the options give the same answer.