The espresso department experienced the following revenue and expenses during October:
$$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 15,000 \
\hline \text { Cost of Goods Sold } & 11,000 \
\hline \text { Direct Operating Expenses } & 2,000 \
\hline \text { Indirect Operating Expenses } & 1,000 \
\hline
\end{array}$$
The espresso departmental gross profit is:

Question

The espresso department experienced the following revenue and expenses during October:
$$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 15,000 \
\hline \text { Cost of Goods Sold } & 11,000 \
\hline \text { Direct Operating Expenses } & 2,000 \
\hline \text { Indirect Operating Expenses } & 1,000 \
\hline
\end{array}$$
The espresso departmental gross profit is:

Quizplus · Accepted Answer

Gross profit is calculated as sales minus cost of goods sold. In this case, sales were $15,000 and cost of goods sold was $11,000, so the gross profit is $15,000 - $11,000 = $4,000.

The Espresso Department Experienced the Following Revenue and Expenses During