Explain how to compute gross profit by completing the following sentence. Gross profit is calculated by taking the net (sales/costs) of a product and (adding/subtracting) the cost of the goods sold.

Explain how to determine gross profit on an income statement by selecting the correct statement below.Multiple choice question.Cost of goods sold is added to sales discounts.Sales is subtracted from cost of goods sold.Cost of goods sold is added to net sales.Cost of goods sold is subtracted from net sales.

Gross profit is:Group of answer choicesthe amount left over after cost of goods sold is subtracted from net salesnet sales less selling expensessales less sales discountsnet sales less operating expenses

Profit will result if gross profit exceeds: Group of answer choices cost of sales. operating expenses. purchases. cost of goods sold plus operating expenses.

How is the cost of goods sold calculated?(5 Points)Beginning inventory + Net purchases - Ending inventoryNet sales - Gross profitBeginning inventory - Net purchases + Ending inventoryNet sales - Gross profit percentage

Gross profit ratio is computed by dividing gross profit by:Group of answer choicesfinancial expenses.cost of sales.net sales.operating expenses.