Multiple Choice Question 165 Concord Company has sales reven

Multiple Choice Question 165

Concord Company has sales revenue of $60700, cost of goods sold of $36800 and operating expenses of $13300 for the year ended December 31. Concord\'s gross profit is

A.

A.

$0.

Solution

Sales Revenue $607,000 Less: Cost of Goods Sold $368,000 Gross Profit $239,000 The answer is option C Note: Operating expenses are not considered while calculating gross profit,          it is deducted while calculating operating profit and net income. Operating Profit = Operating Revenue - COGS - Operating Expenses - Depreciation and Amortization