Question

Blue Co reports the following information for 2025: Sales revenue $762,800 and cost of goods sold $400,000. What would be the company's gross profit?

a) $362,800
b) $762,800
c) $200,000
d) $362,000

Answer 1

To calculate Blue Co's gross profit, subtract the cost of goods sold ($400,000) from the sales revenue ($762,800), which equals $362,800. The correct answer is option a).

The question asks us to calculate the gross profit for Blue Co by subtracting the cost of goods sold (COGS) from the sales revenue. Gross profit is found by using the formula:

Gross Profit = Sales Revenue - Cost of Goods Sold

Applying the given numbers from Blue Co:

Gross Profit = $762,800 - $400,000 = $362,800

Therefore, the correct answer is option a) $362,800.

So, after subtracting the cost of goods sold from the sales revenue, Blue Co's gross profit for 2025 would be $362,800.