If revenue is 150,000 and cost of goods sold is 90,000, what is gross profit?

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Multiple Choice

If revenue is 150,000 and cost of goods sold is 90,000, what is gross profit?

Gross profit is what remains after subtracting the cost of goods sold from revenue. With revenue of 150,000 and COGS of 90,000, you compute 150,000 minus 90,000, which equals 60,000. This number represents the gross profit available to cover other expenses and contribute to profit. The other options would require different inputs (for example, a gross profit of 30,000 would mean COGS of 120,000, a gross profit of 90,000 would mean COGS of 60,000, and a gross profit of 120,000 would mean COGS of 30,000), which aren’t given here.

Gross profit is what remains after subtracting the cost of goods sold from revenue. With revenue of 150,000 and COGS of 90,000, you compute 150,000 minus 90,000, which equals 60,000. This number represents the gross profit available to cover other expenses and contribute to profit. The other options would require different inputs (for example, a gross profit of 30,000 would mean COGS of 120,000, a gross profit of 90,000 would mean COGS of 60,000, and a gross profit of 120,000 would mean COGS of 30,000), which aren’t given here.

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