What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?
A) $200
B) $160
C) $40
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Gross profit is calculated as total sales minus the cost of goods sold. Selling 4 units at $50 each gives total sales of $200. The cost is 4 units at $40 each, totaling $160. Subtracting the cost ($160) from sales ($200) gives a gross profit of $40.

What Is the Gross Profit If 4 Units Are Sold