Crisol Corp. showed net income of 480,000 for the year. Selling expenses were equal to 15% of sales and also 25% of cost of good sold. All other expenses were 13% of sales. What is the gross profit for the year? A. 4,000,000 B. 2,400,000 C. 1,600,000

Cornerstones of Financial Accounting
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Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 26BE: Brief Exercise 1-26 Income Statement An analysis of the transactions of Rutherford Company for the...
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INCOME STATEMENT

Problem 2-4

Crisol Corp. showed net income of 480,000 for the year. Selling expenses were equal to 15% of sales and also 25% of cost of good sold. All other expenses were 13% of sales.

What is the gross profit for the year?

A. 4,000,000

B. 2,400,000

C. 1,600,000

D. 2,000,000

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