Watts Regulator makes hydroponic pressure valves used in water pumps and water heaters. Watts had $100,000 in net sales for the month. Cost of goods sold was $42,000. On an income statement, how would the remaining $58,000 be classified?

Question

Quizplus · Accepted Answer

The remaining $58,000 would be classified as gross profit, which is the revenue minus cost of goods sold. In this case, the gross profit would be $58,000 ($100,000 - $42,000).

Watts Regulator Makes Hydroponic Pressure Valves Used in Water Pumps