Gross profit on a pro-forma income statement is calculated as
A)budgeted sales revenue minus contribution margin.
B)budgeted sales revenue minus budgeted cost of goods sold.
C)budgeted sales revenue minus product cost and period cost.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from the revenue generated by the sale of those goods. As such, the correct calculation for gross profit on a pro-forma income statement is budgeted sales revenue minus budgeted cost of goods sold.

Gross Profit on a Pro-Forma Income Statement Is Calculated as