Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: $$\begin{array} { | l | c c | }
\hline \text { Purchases } & \$ & 90,000 \
\hline \text { Operating expenses } & \mathbf { \$ } & 53,000 \
\hline \text { Bepinning merchandise inventary } & \mathbf { 1 } & 12,000 \
\hline \text { Ending merchandise inventory } & \mathbf { \$ } & 15,000 \
\hline \text { Sales revenue } & \mathbf { \$ } & 172,000 \
\hline
\end{array}$$
- What is gross profit?
A)$ 32,000
B)$ 82,000
C)$ 85,000
D)$119,000

Question

Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: $$\begin{array} { | l | c c | } 
\hline \text { Purchases } & \$ & 90,000 \
\hline \text { Operating expenses } & \mathbf { \$ } & 53,000 \
\hline \text { Bepinning merchandise inventary } & \mathbf { 1 } & 12,000 \
\hline \text { Ending merchandise inventory } & \mathbf { \$ } & 15,000 \
\hline \text { Sales revenue } & \mathbf { \$ } & 172,000 \
\hline
\end{array}$$
- What is gross profit?
A)$ 32,000
B)$ 82,000
C)$ 85,000
D)$119,000

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from the total revenue. In this case, the total revenue is $210,000 and the cost of goods sold is $125,000, so the gross profit is $85,000.

Readers Unlimited Sells Books - What Is Gross Profit? A)$ 32,000 B)$ 82,000 C)

Readers Unlimited Sells Books - What Is Gross Profit?
A)$ 32,000
B)$ 82,000
C)