Question

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

Answer 1

$270,000

Step-by-step explanation:

Calculation for The gross profit

Using this formula

Gross profit = Sales + Cosing stock - Purchases

Let plug in the formula

Gross profit =(45,000*15) +

(450,000/50,000)*5,000 - 450,000

Gross profit =$675,000+(9*5,000)-450,000

Gross profit =$675,000+$45,000-450,000

Gross profit = $270,000

Therefore The gross profit is $270,000