Question

if the cost of goods sold was $42,000 the income from sales was $86,000 and the expenses were $12,000 find gross profit and net profit

Answer 1

Gross profit is $44,000 and Net profit is $32,000

Explanation:

Given :

• cost of goods sold = $42,000
• The income or revenue = $86,000
• expenses = $12,000

Gross profit :

Gross Profit = Total income - Cost of goods sold

⇒ $86,000 - $42,000

⇒ $44,000

⇒ Gross profit is $44,000

Net profit :

Net profit = Gross profit – Total Expenses

⇒ $44,000 - $12,000

⇒ $32,000

⇒ Net profit is $32,000