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The Gross Profit will be $, ($ Ninety Thousand only). To compute gross profit, one need to deduct cost of goods sold from sales revenue ($,-$,)
To calculate Gross Profit, deduct Cost of Goods Sold from Sales. In the given scenario: Gross Profit is $90,000 ($ 400,000 - $ 310,000). Operating expenses are not considered while calculating gross profits.
If you deduct operating expenses from gross profits you will get Net Profit.
The Gross profit is how much money the co. got back from the sum it has spent to buy product before resale (cost of goods) plus the profit made which is the difference between the sales revenue and cost of goods regardless of expenses. In this case = 90000.
The NET profit is all of the above and in the end subtracting any other expenses incurred i.e. operations expenses. in this case = 30000.
for calculation of gross profit on must consider expenditure incurred for production of goods,
So gross profit = Sales revenue- cost of goods sold, thus $400000-$ 310000=$90000.
Operating expenses should not be consider.
Regards
Gross profit = revenues - cost of goods sold = 400,000 - 310,000 = $90,000
Operating income = Gross profit - operating expenses = $90,000 - $60,000 = $30,000
Gross Profit will be $90,000 and Net profit will be $30,000 in the case of not having any Income from other activities
At this level of activity the GP of this company is $ 30,000
The correct answer is $90,000
the gross profit will be 70000
Gross Profit = Sales - COGS = 400,000-310,000= 90,000/-
I agree with Mr Mirza
Since G P = Sales - Cost of Good sold , the value it will be USk
Of course I´m considering those "Operating Expenses" as variable costs.
