Ravens Inc.has net sales of $200,000,cost of goods sold of $120,000,selling expenses of $6,000,and nonoperating expenses of $2,000.What is the company's gross profit?

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from net sales. Gross profit = net sales - cost of goods sold = $200,000 - $120,000 = $80,000. Selling and nonoperating expenses are not included in the calculation of gross profit.