The total cost is calculated by subtracting the total profit from total sales. With total sales of $7,500,500 and a total profit of $1,250,000, the total cost amounts to $6,250,500.
The question you've asked relates to calculating the total cost on an income statement given the total sales and total profit figures. To find the total cost, we need to subtract the total profit from the total sales.
Total sales are reported as $7,500,500, and total profit is $1,250,000. The calculation will be:
Total Cost = Total Sales - Total Profit
Total Cost = $7,500,500 - $1,250,000
Total Cost = $6,250,500
Therefore, the total cost reported on the income statement is $6,250,500.