Calculate the gross profit for Jefferson Company based on the following: Sales $764,000 Selling expenses 42,500 Cost of merchandise sold 538,000 a.$721,500 b.$183,500 c.$495,500 d.$226,000

$226,000.00

Explanation:

The cost of merchandise sold is same as the cost of goods sold, COGS.

COGS is calculated using the formula ,  beginning inventory + purchases - closing inventory.

Gross profist is calculated as sales - revenue

= $764,000 - $538,000

=$226,000.00

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