Bennie's Polish Palace had credit card sales of $2,000 with cost of goods sold of $800, and cash sales of $1,000 with cost of goods sold of $400. Operating expenses were $1,000. What is Bennie's gross profit?

Question

Quizplus · Accepted Answer

Gross profit is calculated as total sales minus cost of goods sold. Total sales are $3,000 ($2,000 credit + $1,000 cash) and total cost of goods sold is $1,200 ($800 credit + $400 cash). Thus, gross profit is $3,000 - $1,200 = $1,800.

Bennie's Polish Palace Had Credit Card Sales of $2,000 with Cost