Financial information is presented below:
$\begin{array}{lr}
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 25,000 \
\text { Sales Discounts } & 15,000 \
\text { Sales } & 400,000 \
\text { Cost of Goods Sold } & 212,400
\end{array}$
Gross profit would be

Question

Financial information is presented below: 
$\begin{array}{lr}
\text { Operating Expenses } & \$ 90,000 \
\text { Sales Returns and Allowances } & 25,000 \
\text { Sales Discounts } & 15,000 \
\text { Sales } & 400,000 \
\text { Cost of Goods Sold } & 212,400
\end{array}$
Gross profit would be

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from revenue. In this case, revenue is $450,000 and cost of goods sold is $302,400, so the gross profit is $147,600 (option A).

Financial Information Is Presented Below Gross Profit Would Be A) $147,600 B) $57,600 C) $270,000

Financial Information Is Presented Below Gross Profit Would Be
A) $147,600
B) $57,600
C) $270,000