Concept:Gross profit or gross loss is determined by comparing net sales with the cost of goods sold.Explanation:When net sales are greater than the cost of goods sold, the excess is called gross profit.When the cost of goods sold is greater than net sales, the excess is called gross loss.Here, the question states that cost of goods sold exceeds net sales.Therefore, this excess represents a loss at the gross level, not a profit.Answer:B. Gross loss