BMX Co Sells Item XJ15 for $1,000 Per Unit, and Has

Multiple Choice

BMX Co. sells item XJ15 for $1,000 per unit, and has a cost of goods sold percentage of 80%. The gross profit to be found for selling 20 items is:

A) $ 4,000.
B) $20,000.
C) $16,000.
D) No gross margin can be calculated with a cost of goods sold percentage greater than 50%.