GH Enterprises has annual sales of $3.4 million, depreciation of $260,000, operating expenses of $500,000, and cost of goods sold of $2.2 million. What is the gross profit?

Name: GH Enterprises has annual sales of $3.4 million, depreciation of $260,000, operating expenses of $500,000, and cost of goods sold of $2.2 million. What is the gross profit?
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Question

Quizplus · Accepted Answer

Gross profit is calculated as sales minus the cost of goods sold (COGS). Therefore, gross profit = $3.4 million - $2.2 million = $1.2 million.

GH Enterprises Has Annual Sales of $3