During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7 000 and income tax expense was $5 000. What was the gross profit of Grasso Ltd for the year?

Question

Quizplus · Accepted Answer

Total revenue = 2000 * $30 = $60,000
Total cost of goods sold = 2000 * $22 = $44,000
Gross profit = Total revenue - Total cost of goods sold = $60,000 - $44,000 = $16,000
Operating expenses and income tax expense are irrelevant to calculating gross profit.

During the Year, Grasso Ltd Sold 2000 Items at $30