Question

Financial information is presented below: Operating Expenses $ 90800 Sales Returns and Allowances 26600 Sales Discounts 11200 Sales Revenue 293000 Cost of Goods Sold 158600 Gross profit would be $96600. $107800. $123200. $134400.

Answer 1

The correct answer would be option A, $96600.

Step-by-step explanation:

Gross profit is the amount of profit which a company earns after deducting all the costs which incurred in the making and sale of the products of the company.

Gross profit can be found out by the following formula:

Gross Profit = Total Sales - Cost of Goods Sold

Total Sales will be Sales Revenue - Sales Return - Sales Discounts

So here total sales revenue will be = 293000 - 26600 - 11200

= 255200

Total sales Revenue: 255200

Cost of goods Sold = 158600

Gross Profit = 255200 - 158600

Gross Profit = $96600