To find the cost of goods sold (COGS) when you know the gross profit margin and net sales, you can use the following formulas:
1. **Gross Profit Margin** = Gross Profit / Net Sales
2. **Gross Profit** = Net Sales - COGS
Given:
- Gross profit margin: 40% (or 0.40 as a decimal)
- Net sales: $1,000,000
First, calculate the gross profit:
\[
\text{Gross Profit} = \text{Gross Profit Margin} \times \text{Net Sales}
\]
\[
\text{Gross Profit} = 0.40


