NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $18,000 in operating expenses, and $2,000 in other income. What is NBC Company's gross profit?

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of merchandise sold from the net sales. Therefore, the gross profit for NBC Company would be:

$32,000 (net sales) - $15,000 (cost of merchandise sold) = $17,000.

Operating expenses and other income are not included in the calculation of gross profit.

NBC Company Had $32,000 in Net Sales, $15,000 in Cost