Question

A business sells $23,000 worth of merchandise, and its cost of inventory was $13000. what is the gross profit listed on the income statement?A.$13,000B.$ 36,000C.$23,000D.$10,000

Answer 1

ANSWER

$D.\text{ }\ 10,000$

EXPLANATION

To find the gross profit, find the difference between the cost of goods and the revenue obtained.

Therefore, the gross profit is:

$\begin{gathered} P=\ 23,000-\ 13,000 \\ \\ P=\ 10,000 \end{gathered}$

That is the answer (option D).