Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon. General and administrative expenses are $0.75. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Gross profit is calculated as the selling price minus the cost of goods sold. Here, $4 (selling price) - $1.50 (cost) = $2.50 gross profit per half gallon. General and administrative expenses are not included in the gross profit calculation.

Your Store Buys Ice Cream at a Cost of $1