Jerry wants to calculate gross profit for his business. Which formula should he use?
A) Operating expenses minus income taxes
B) Sales revenue minus income taxes
C) Sales revenue minus operating expenses
D) Sales revenue minus cost of goods sold
E) Operating income minus income taxes

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from the sales revenue. Therefore, Jerry should use the formula Sales revenue minus cost of goods sold to calculate his gross profit.

Jerry Wants to Calculate Gross Profit for His Business