Question

The total revenue for a given year of a firm is $1,000,000. The cost of goods sold for the same accounting period is $360,000. The total expenses incurred are $200,000. What is the net profit for the firm?

A.)$360,000
B.)$440,000
C.)$800,000
D.)$640,000
E.)$560,000

Answer 1

The correct answer is B) $440,000.

Subtract the cost of goods from the revenue:
1,000,000 - 360,000 = 640,000

Now subtract the expenses:
640,000 - 200,000 = 440,000