A company has three departments (A, B, and C) and the net sales are $370,000; $400,000; and $285,000 respectively. The cost of goods sold per department is $291,000; $360,000; and $245,000 respectively. What department has the highest gross profit?

Question

Quizplus · Accepted Answer

Department A has the highest gross profit. Gross profit is calculated as net sales minus the cost of goods sold. For department A, the gross profit is $370,000 - $291,000 = $79,000. For department B, it's $400,000 - $360,000 = $40,000. For department C, it's $285,000 - $245,000 = $40,000. Therefore, department A has the highest gross profit.

A Company Has Three Departments (A, B, and C) and the Net