Answer:
c. $ 390,000
Explanation:
The gross profit is computed as follows:
Sales $ 800,000
Less: Sales discounts $ (12,000)
Less: Sales return and allowances $ ( 18,000)
Net sales $ 770,000
Less: Cost of goods sold $ (380,000)
Gross Profit $ 390,000
Gross profit is the profit of the entity after considering the net revenue and reducing the cost of goods sold therefrom. To get the net revenue/sales any discounts allowed or sales returns are adjusted.
The operating expenses are not considered as these are considered for net income purposes.
