Test Index

WAEC Commerce 2022 Paper

Question : 14

Total: 50

Calculate the gross profit.

Solution:

Concept:

Gross profit is the profit from sales before deducting operating expenses.

Explanation:

Formula:

\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}

Given: Sales

= \text{\#}120,000

and Cost of Goods Sold

= \text{\#}85,000

Substitute the values:

\text{Gross Profit} = \text{\#}120,000 - \text{\#}85,000

Therefore,

\text{Gross Profit} = \text{\#}35,000

Operating expenses are ignored in the gross profit calculation.

Answer:

\text{\#}35,000.00

(Option A)

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