Question

​Jim's Handicrafts' main product sells for​ $100 and the cost of goods sold is​ $40. The​ $60 (the difference between the​ two) is called​ ______.

Answer 1

Gross Profit

Step-by-step explanation:

Gross Profit is defined as the amount earned by the company, after deducting the cost of producing and selling the products in case of a manufacturing business, or the cost of providing services to customers in case of service oriented business. Therefore, the difference between sales revenue and the cost of goods sold is called Gross Profit.

Sales Revenue - Cost of Goods Sold = Gross Profit

$100 - $ 40 = $60