Question

At his comic book store, korey's comics, korey sells approximately $3,250 in comic books each month. but as a comic book dealer, korey only pays $1,285 for these comic books. korey's monthly operating expenses, including labor, are $875. calculate korey's monthly gross profit.
a. $1,090
b. $1,965
c. $2,375
d. $2,840

Answer 1

Answer: The correct answer is choice b - $1,965.

Explanation: The formula for gross profit is sales minus the cost of goods sold. In this case Korey has sales of $3,250, and the cost of these items was $1,285. In order to calculate the monthly gross profit you need to subtract the cost of the goods sold from the sales. $3,250 - $1,285 = $1,965.

Answer 2

Answer:

The answer is: B) $1,965

Explanation:

The formula for calculating gross profit is:

• gross profit = total revenue - cost of goods sold

Korey's Comics gross profit is: $3,250 - $1,285 = $1,965

The complete income statement is:

Total revenue                          $3,250

COGS                                      ($1,285)

Gross profit                             $1,965

Other expenses                       ($875)

Net profit                                  $1,090