Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals:
A) $150,000.
B) $450,000.
C) $200,000.
D) $350,000.
E) $800,000.

Question

Quizplus · Accepted Answer

We can use the formula:

Gross Profit = Net Sales - Cost of Goods Sold

Plugging in the given numbers, we get:

$350,000 = $800,000 - Cost of Goods Sold

Solving for Cost of Goods Sold, we get:

Cost of Goods Sold = $800,000 - $350,000 = $450,000

Therefore, the correct answer is (B) $450,000.

Cushman Company Had $800,000 in Net Sales, $350,000 in Gross