Question

Brunswick Company sold 18,000 jars of its organic honey in the most current year for $13 per jar. The company had paid $7.50 per jar of honey. Calculate thebfollowing.

1. Sales revenue
2. Cost of goods sold
3. Gross profit

Answer 1

Brunswick Company's sales revenue is $234,000, the cost of goods sold is $135,000, and the gross profit is $99,000, calculated by multiplying the number of jars sold by the sale price and the cost per jar, and subtracting the COGS from the sales revenue.

Step-by-step explanation:

Calculation of Sales Revenue, Cost of Goods Sold, and Gross Profit

To calculate the sales revenue, we multiply the number of jars sold by the selling price per jar. Therefore, sales revenue would be 18,000 jars × $13 per jar, giving us a total of $234,000.

The cost of goods sold (COGS) is calculated by multiplying the number of jars sold by the cost per jar. The COGS for Brunswick Company would be 18,000 jars × $7.50 per jar, totaling $135,000.

To find the gross profit, we subtract the COGS from the sales revenue. Thus, the gross profit would be $234,000 - $135,000, resulting in a total of $99,000.