During March 2020, Torres Company Generated Sales Revenues of $155,000

question 82

Multiple Choice

During March 2020, Torres Company generated sales revenues of $155,000. The company's sales returns and allowances were $25,000 and sales discounts were $5,000 Torres' expenses were as follows: cost of goods sold of $85,000, operating expenses of $35,000, interest expense of $3,000 and a gain on disposal of plant assets of $15,000. The company's gross profit for the month is

• A) $5,000.
• B) $37,000.
• C) $40,000.
• D) $70,000.