If revenue is $9,000 and cost of goods sold is $1,200, what is gross income?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the GMetrix Marketing Test. Utilize flashcards and multiple choice queries, with each query featuring hints and explanations to bolster your understanding. Excel in your exam preparation journey!

Multiple Choice

If revenue is $9,000 and cost of goods sold is $1,200, what is gross income?

Explanation:
Gross income (gross profit) is the amount left after covering the cost of goods sold from the revenue. It’s calculated by subtracting COGS from revenue. Here, 9,000 minus 1,200 equals 7,800. The revenue alone is 9,000, the cost of goods sold alone is 1,200, and adding them together doesn’t represent profitability. So the correct gross income is 7,800.

Gross income (gross profit) is the amount left after covering the cost of goods sold from the revenue. It’s calculated by subtracting COGS from revenue. Here, 9,000 minus 1,200 equals 7,800. The revenue alone is 9,000, the cost of goods sold alone is 1,200, and adding them together doesn’t represent profitability. So the correct gross income is 7,800.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy