Question

Now it's your turn. Calculate the gross profit for Carly's Candles. The first step is to calculate the

revenue.
Carly pays $9 to the manufacturer for every large candle. She sells the large candles for a retail price
of $30 each. Carly pays $5 to the manufacturer for each small candle and sells them for a retail price
of $14 each.
Carly sold 24 large candles and 40 small candles.
Calculate the gross profit using total revenue and cost of goods sold (COGS). You can use a
calculator if you'd like to.
iross Profit= Revenue - COGS

Answer 1

Answer: The Gross Profit for Carly's Candles is $864.

Explanation:

Step 1: Calculate Total Revenue

Large Candles: 24 x $30 = $720

Small Candles: 40 x $14 = $560

Total Revenue = $720 + $560 = $1,280

Step 2: Calculate Cost of Goods Sold (COGS)

Large Candles: 24 x $9 = $216

Small Candles: 40 x $5 = $200

COGS = $216 + $200 = $416

Step 3: Calculate Gross Profit

Gross Profit = Revenue - COGS

Gross Profit = $1,280 - $416 = $864