A company had a gross profit of $200,000 based on sales of $450,000.Its cost of goods sold equals $250,000.

Name: A company had a gross profit of $200,000 based on sales of $450,000.Its cost of goods sold equals $250,000.
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Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from the sales. In this case, gross profit = sales - cost of goods sold = $450,000 - $250,000 = $200,000. Therefore, the statement is true.

A Company Had a Gross Profit of $200,000 Based on Sales