Asked by Jenna Wright on May 26, 2024
Verified
Financial information is presented below: Operating Expenses $65,000\quad \$ 65,000$65,000
Sales Revenue 220,000\quad\quad \quad 220,000220,000
Cost of Goods Sold 138,000\quad 138,000138,000 Gross profit would be
A) $17000.
B) $82000.
C) $155000.
D) $220000.
Gross Profit
The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxes, and interest payments.
Operating Expenses
Costs associated with the day-to-day operations of a business, including rent, utilities, salaries, and office supplies.
Sales Revenue
The income received from selling goods or services over a given period of time before any deductions are made for costs or expenses.
- Ascertain the gross profit and appreciate its relevance in financial scrutiny.
Verified Answer
MJ
Marcelina Jimenez-SmithMay 29, 2024
Final Answer :
B
Explanation :
Gross profit is calculated as Sales Revenue minus Cost of Goods Sold. Therefore, $220,000 - $138,000 = $82,000.
Learning Objectives
- Ascertain the gross profit and appreciate its relevance in financial scrutiny.