Question

Question 11 Financial information is presented below: Operating expenses $ 33000 Sales returns and allowances 5000 Sales discounts 3000 Sales revenue 156000 Cost of goods sold 110000 Gross profit would be $43000. $41000. $38000. $46000.

Answer 1

Answer:

$38,000

Explanation:

in order to determine gross profit we must prepare the following:

total revenue                    $156,000

-cost of goods sold         ($110,000)

-sales discounts                ($3,000)

-sales returns & allow.      ($5,000)

gross profit                       $38,000

operating expenses ($33,000) are not included in the calculation of gross profit