Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $25 per unit.
Sales (in units):
January= 45,000
February= 55,000
March= 50,000
The cost of goods sold is $14 per unit.
The gross profit is calculated using the following formula:
Gross profit= selling price - cost of goods sold
January:
Sales= 45,000*25= 1,125,000
COGS= 45,000*14= (630,000)
Gross profit= 525,000
February:
Sales= 55,000*25= 1,375,000
COGS= 55,000*14= (770,000)
Gross profit= 605,000
March:
Sales= 50,000*25= 1,250,000
COGS= 50,000*14= (700,000)
Gross profit= 550,000
