calculate the net profit for an item sold for $20 that has a $8 cost of goods sold and 10% operating expense…
calculate the net profit for an item sold for $20 that has a $8 cost of goods sold and 10% operating expense cost. net profit = $?
Answer
Explanation:
Step1: Calculate operating expense
Operating expense = Selling price × 10% = $20\times0.1=$2$
Step2: Calculate total cost
Total cost = Cost of goods sold + Operating expense = $8 + 2=$10$
Step3: Calculate net - profit
Net profit = Selling price - Total cost = $20-10=$10$
Answer:
$10$