What Is the Total Gross Profit of the Company If

question 47

Short Answer

What is the total gross profit of the company if there are three departments (A, B, and C) and the net sales are $200,000, $164,000, and $286,000, respectively, and cost of goods sold is $86,000, $92,000, and $82,000, respectively
A)$390,000
B)$650,000
C)$400,000
D)$260,000

• A)$390,000
• B)$650,000
• C)$400,000
• D)$260,000

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Definitions:

Sales Increase

Refers to the rise in the amount of goods or services sold by a company over a specific period, showcasing business growth.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Retained Earnings

Cumulative net earnings or profit of a firm after accounting for dividends; they are reinvested in the core business or to pay debt.

Net Income

The net income of a company once all costs and taxes are deducted from the overall revenue.