Question

Calculate the gross profit for Jefferson Company based on the following: sales $764,000, selling expenses $42,500, cost of goods sold $538,000?

Answer 1

To calculate the gross profit, subtract the cost of goods sold from the sales revenue.

Step-by-step explanation:

To calculate the gross profit for Jefferson Company, you need to subtract the cost of goods sold (COGS) from the sales revenue. Gross profit represents the profit made from the sale of goods before deducting selling expenses.

Gross profit = Sales revenue - Cost of goods sold

Using the given information:

Gross profit = $764,000 - $538,000 = $226,000