Multiple Choice
If a company submits a bid with expected net sales of \$50,000 and estimated costs of \$42,500, what is the expected profit for this bid (to 2 decimals)?
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4. Merchandising Operations
Net Sales
Multiple Choice
If a company has net sales of \$50 and the cost of goods sold is \$35, what is the gross profit?
A
\$15
B
\$85
C
\$50
D
\$35
Verified step by step guidance1
Understand the concept of gross profit: Gross profit is calculated by subtracting the cost of goods sold (COGS) from net sales. It represents the profit a company makes after deducting the direct costs associated with producing its goods or services.
Identify the given values in the problem: Net sales are \$50, and the cost of goods sold (COGS) is \$35.
Write the formula for gross profit: Gross Profit = Net Sales - Cost of Goods Sold.
Substitute the given values into the formula: Gross Profit = \$50 - \$35.
Perform the subtraction to determine the gross profit. The result will represent the company's gross profit.
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