When solving for the gross profit on a product use:
Gross profit = Sales - Cost of goods sold
Sales = $814,000
Cost of goods sold = $386,650
Gross profit = $814,000 - $386,650
Gross profit = $445,350
Answer:
Direct channel
Explanation:
A channel of distribution (also known as marketing channel) involves a group of interdependent organizations who work together to make a product or service available for use or consumption, as well as providing a means of payment to the provider.
A direct channel of distribution is a type of distribution in which product and services are made readily to the consumer by the producers without using any intermediaries.
<h2>No. "Household production" does not contribute much to the GDP.</h2>
Explanation:
To arrive at the reason, first we need to understand the term "GDP" and "shortcoming"
Shortcoming means failure to meet certain expectations.
GDP: It is the snapshot of the economy which speaks about the production in certain period.
Since the household production does not come under market transaction and since GDP involves only market transaction, household production cannot be considered and thus it is not a serious reason for shortcoming of GDP.
