Question

Bonnie's Bed and Bath Store had annual sales of $654,102. If the cost of goods sold was $301,700, what is the gross annual profit?$955,802$352,402$402,402$452,402None of these choices are correct.

Answer 1

The value of annual sales is $ 654,102.

The value of cost of goods sold is $ 301,700.

The gross annual profit can be determined as,

`\begin{gathered} \text{Gross Annual profit=Annual sales-Cost of goods} \\ =654102-301700 \\ =352402 \end{gathered}`

Thus, the required profit is $352,402. Thus, option (b) is correct.