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27 March, 10:09

Financial information is presented below: Operating Expenses $ 90800 Sales Returns and Allowances 26600 Sales Discounts 11200 Sales Revenue 293000 Cost of Goods Sold 158600 Gross profit would be $96600. $107800. $123200. $134400.

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  1. 27 March, 11:28
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    The correct answer would be option A, $96600.

    Explanation:

    Gross profit is the amount of profit which a company earns after deducting all the costs which incurred in the making and sale of the products of the company.

    Gross profit can be found out by the following formula:

    Gross Profit = Total Sales - Cost of Goods Sold

    Total Sales will be Sales Revenue - Sales Return - Sales Discounts

    So here total sales revenue will be = 293000 - 26600 - 11200

    = 255200

    Total sales Revenue: 255200

    Cost of goods Sold = 158600

    Gross Profit = 255200 - 158600

    Gross Profit = $96600
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