Asked by Abo Yousef Khaleel on Jul 13, 2024
Verified
A company had sales of $350,000 and cost of goods sold of $200,000.Its gross profit equals $150,000.
Gross Profit
The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, and taxes.
- Acquire knowledge on the calculation and significance of the cost of goods sold and how it influences an organization's gross profit.
Verified Answer
NN
nurul nadhirahJul 16, 2024
Final Answer :
True
Explanation :
Gross profit is calculated by subtracting cost of goods sold from sales. In this case, $350,000 (sales) minus $200,000 (cost of goods sold) equals $150,000 (gross profit).
Learning Objectives
- Acquire knowledge on the calculation and significance of the cost of goods sold and how it influences an organization's gross profit.