calculate the net profit for an item sold for $40 that has an $18 cost of goods sold and 20% operating…
calculate the net profit for an item sold for $40 that has an $18 cost of goods sold and 20% operating expense cost. net profit = $?
Answer
Explanation:
Step1: Calculate operating expense
Operating expense = Selling price × Operating - expense rate. So, operating expense = $40\times0.2=$8$.
Step2: Calculate net - profit
Net profit = Selling price - Cost of goods sold - Operating expense. Substitute the values: Net profit = $40 - 18-8$. $40-18 - 8=14$.
Answer:
$14$