calculate the net profit for an item sold for $20 that has a $12 cost of goods sold and 20% operating…
calculate the net profit for an item sold for $20 that has a $12 cost of goods sold and 20% operating expense cost. net profit = $?
Answer
Explanation:
Step1: Calculate operating expense
Operating expense = Selling price×20% = $20\times0.2=$4$
Step2: Calculate net profit
Net profit = Selling price - Cost of goods sold - Operating expense = $20 - 12-4$ $= $4$
Answer:
$4$