During August, 2010, Joe's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $12,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.
Joe's gross profit for August, 2010 is

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from revenues. Therefore, Joe's gross profit for August, 2010 is $30,000 - $12,000 = $18,000. The rent revenue and gain on the sale of the delivery truck are not relevant to the calculation of gross profit.

During August, 2010, Joe's Supply Store Generated Revenues of $30,000