how do you calculate gross profit? (1 point)\nadd up all revenue and subtract the cost of goods sold\ntotal…
how do you calculate gross profit? (1 point)\nadd up all revenue and subtract the cost of goods sold\ntotal all revenue and subtract income taxes\nadd up all sales made for the period\ntotal all revenue and subtract cogs, sg&a, and income taxes
Answer
Brief Explanations:
Gross profit is calculated by taking total revenue and subtracting the cost of goods sold (COGS). It represents the profit a company makes after accounting for the direct costs associated with producing or purchasing the goods it sells. Income - taxes, SG&A (selling, general, and administrative expenses) are not part of the calculation of gross profit. Just adding up sales is revenue, not gross profit.
Answer:
add up all revenue and subtract the cost of goods sold