Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in total other expenses. Gross profit equals:

Question

Quizplus · Accepted Answer

Gross profit is calculated as sales minus sales discounts, sales returns and allowances, and cost of goods sold. So, $800,000 - $12,000 - $18,000 - $380,000 = $390,000.

Brig Company Had $800,000 in Sales, Sales Discounts of $12,000