Using the information below, calculate gross profit for the period.
A) $714,000.
B) $482,000.
C) $1,022,000.
D) $187,000.
E) Cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from the net sales. In this case, the net sales are $1,200,000 and the cost of goods sold is $486,000, so the gross profit is $1,200,000 - $486,000 = $714,000.

Using the Information Below, Calculate Gross Profit for the Period