Answer:
Gross profit = $417,000
Explanation:
Gross profit is the excess of the sales revenue over and above the cost of goods sold. It shows how profitable a business is by managing well the cost of inputs that can be directly related to the goods sold. .
If the gross profit is falling over time it indicates the business is losing control over the cost of its input
Gross profit = Sales revenue - cost of goods sold.
The gross profit= 695,000 - 278,000
= $417,000
