Question

Cushman company had $814,000 in sales, sales discounts of $12,210, sales returns and allowances of $18,315, cost of goods sold of $386,650, and $280,015 in operating expenses. gross profit equals:

Answer 1

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