Calculate the gross profit for Jefferson Company based on the following: $$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 764,000 \
\hline \text { Selling expenses } & 42,500 \
\hline \text { Cost of merchandise sold } & 538,000 \
\hline
\end{array}$$

Question

Calculate the gross profit for Jefferson Company based on the following: $$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 764,000 \
\hline \text { Selling expenses } & 42,500 \
\hline \text { Cost of merchandise sold } & 538,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Gross profit is calculated as Sales minus Cost of Merchandise Sold. Therefore, \$764,000 - \$538,000 = \$226,000. Selling expenses are not considered in the calculation of gross profit.

Calculate the Gross Profit for Jefferson Company Based on the Following