If income is 8000 and cost of goods is 2500, what is gross profit?

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Multiple Choice

If income is 8000 and cost of goods is 2500, what is gross profit?

Explanation:
Gross profit is the amount left from sales after paying for the direct cost of producing the goods. It’s calculated by subtracting the cost of goods sold from income (revenue). With income of 8,000 and COGS of 2,500, the calculation is 8,000 − 2,500 = 5,500. So the gross profit is 5,500. The other options would come from subtracting different amounts or mixing up the operation, which isn’t how gross profit is defined.

Gross profit is the amount left from sales after paying for the direct cost of producing the goods. It’s calculated by subtracting the cost of goods sold from income (revenue). With income of 8,000 and COGS of 2,500, the calculation is 8,000 − 2,500 = 5,500. So the gross profit is 5,500. The other options would come from subtracting different amounts or mixing up the operation, which isn’t how gross profit is defined.

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