Gross profit is $44,000 and Net profit is $32,000
Step-by-step explanation:
Given :
- cost of goods sold = $42,000
- The income or revenue = $86,000
- expenses = $12,000
Gross profit :
Gross Profit = Total income - Cost of goods sold
⇒ $86,000 - $42,000
⇒ $44,000
⇒ Gross profit is $44,000
Net profit :
Net profit = Gross profit – Total Expenses
⇒ $44,000 - $12,000
⇒ $32,000
⇒ Net profit is $32,000
