Boston Company sells twenty items for $1100 per unit, and has a cost of goods sold percentage of 60%. The gross profit to be reported for selling 20 items is:

Question

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The gross profit is calculated by subtracting the cost of goods sold from the sales revenue. The cost of goods sold is 60% of the sales price, so the gross profit percentage is 40%. For 20 items at $1100 each, the total sales revenue is $22,000. The gross profit is 40% of $22,000, which is $8,800.

Boston Company Sells Twenty Items for $1100 Per Unit, and Has