In 2010, JRE2 would report (rounded to the nearest thousand) gross profit (loss) of:

Question

Quizplus · Accepted Answer

We can calculate the 2010 gross profit by subtracting the cost of goods sold from total revenue. Total revenue in 2010 is $2,200,000 and the cost of goods sold is $2,150,000 ($250,000 + $1,500,000 + $400,000 + $50,000) which gives a gross profit of $50,000. Therefore, the best choice is B, which corresponds to a gross profit of $50,000.

In 2010, JRE2 Would Report (Rounded to the Nearest Thousand)