Question

A business sells $23,000 worth of merchandise, and its cost of inventory was $13000. what is the gross profit listed on the income statement?A.$13,000B.$ 36,000C.$23,000D.$10,000

Answer 1

`D.\text{ }\$10,000`

Step-by-step explanation

To find the gross profit, find the difference between the cost of goods and the revenue obtained.

Therefore, the gross profit is:

`\begin{gathered} P=\$23,000-\$13,000 \\ \\ P=\$10,000 \end{gathered}`

That is the answer (option D).