Blackstone Buildings, Inc. had net sales of $645,000, cost of goods sold of $315,400, and payroll expense of $195,000. Compute the gross profit on sales.

Gross Profit

The difference between sales and the cost of goods sold, representing the fundamental earning efficiency of a company's core activities.

Payroll Expense

The total amount of money a business pays to its employees as wages or salaries, including taxes and benefits, for a specific period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.