Crystal Inc. is a merchandiser of stone ornaments. It sold 15,000 units in 2015. The company has provided the following information: How much is the gross profit for 2015?

Question

Crystal Inc. is a merchandiser of stone ornaments. It sold 15,000 units in 2015. The company has provided the following information:  How much is the gross profit for 2015?

Quizplus · Accepted Answer

Gross profit = sales revenue - cost of goods sold
Sales revenue = 15,000 units x $45/unit = $675,000
Cost of goods sold = (10,000 units x $20/unit) + (5,000 units x $23/unit) = $200,000 + $115,000 = $315,000
Gross profit = $675,000 - $315,000 = $360,000
Therefore, the gross profit for 2015 is $252,700 (C).