Question

Waymon co. has net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. what is its gross profit?

Answer 1

Let

P-------> the profit

N------> the net sales

C-----> cost of goods

O-----> operating expense

we know that

`P=N-(C+O)`

in this problem

`N=`$
`100,000`

`C=`$
`70,000`

`O=`$
`18,000`

Substitute the values in the formula above to find the Profit

`P=100,000-(70,000+18,000)`

`P=100,000-(88,000)`

`P=12,000`

therefore

the answer is

the Gross Profit is equal to $
`12,000`

Answer 2

profit is equal to gains - losses. In this case it would be
100,000-70,000-18,000=profit=$12,000