A company has four departments (A, B, C and D) and the net sales are $30,000; $50,000; $60,000 and $35,000 respectively. The cost of goods sold per department is $25,000; $15,000; $40,000 and $15,000 respectively. What department has the lowest dollar gross profit?

Question

Quizplus · Accepted Answer

The gross profit is calculated as net sales minus the cost of goods sold. For department A, the gross profit is $30,000 - $25,000 = $5,000. For department B, it is $50,000 - $15,000 = $35,000. For department C, it is $60,000 - $40,000 = $20,000. For department D, it is $35,000 - $15,000 = $20,000. Department A has the lowest gross profit of $5,000.

A Company Has Four Departments (A, B, C and D)