If Revenue is 800 and COGS is 575, what is the Gross Profit?

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Multiple Choice

If Revenue is 800 and COGS is 575, what is the Gross Profit?

Explanation:
Gross profit is what you earn from selling goods after subtracting the cost of those goods. It’s calculated as revenue minus cost of goods sold. With revenue of 800 and COGS of 575, you get 800 − 575 = 225. So the gross profit is 225. The other numbers don’t fit because 800 would be revenue, not profit; 1575 would be the sum of revenue and COGS, which isn’t how gross profit is calculated; and 575 is just the COGS, not the profit.

Gross profit is what you earn from selling goods after subtracting the cost of those goods. It’s calculated as revenue minus cost of goods sold. With revenue of 800 and COGS of 575, you get 800 − 575 = 225. So the gross profit is 225. The other numbers don’t fit because 800 would be revenue, not profit; 1575 would be the sum of revenue and COGS, which isn’t how gross profit is calculated; and 575 is just the COGS, not the profit.

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