Kayla and Kingston run a shuttle service from Water Tower Place to Chicago O'Hare airport. Last month, they recorded the following: Kayla and Kingston's gross profit for the past month was
A) $682.00
B) Kayla: $341.00; Kingston: $341.00
C) $1250.00
D) $2750.00

Question

Kayla and Kingston run a shuttle service from Water Tower Place to Chicago O'Hare airport. Last month, they recorded the following:  Kayla and Kingston's gross profit for the past month was
A) $682.00 
B) Kayla: $341.00; Kingston: $341.00 
C) $1250.00 
D) $2750.00

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from revenues. Cost of goods sold represents items that are directly related to producing the product or service. In this problem, fuel charge represents a cost of goods sold. Revenues [$2000.00], minus cost of goods sold [$750] = gross profit [$1250.00].

Kayla and Kingston Run a Shuttle Service from Water Tower