The PJC department of McIntyre Company shows gross sales of $730,600 for computer supplies and $934,900 for general office supplies. It has determined that computer supplies cost $534,000 and that general office supplies cost $391,400. What is the total gross profit for the PJC department?

Question

Quizplus · Accepted Answer

The formula for calculating gross profit is Gross Sales - Cost of Goods Sold. 
For computer supplies: 
Gross Sales = $730,600 
Cost of Goods Sold = $534,000 
Therefore, gross profit for computer supplies = $730,600 - $534,000 = $196,600

For general office supplies: 
Gross Sales = $934,900 
Cost of Goods Sold = $391,400 
Therefore, gross profit for general office supplies = $934,900 - $391,400 = $543,500

Total Gross Profit = Gross Profit for Computer Supplies + Gross Profit for General Office Supplies
Total Gross Profit = $196,600 + $543,500 
Total Gross Profit = $740,100

Therefore, the best choice is D, with a total gross profit of $740,100.

The PJC Department of McIntyre Company Shows Gross Sales of $730,600