Question

Gross profit on short sales are calculated as

Answer 1

Answer :— It involves deducting the cost of goods sold from net sales or total revenue. Thereby, to calculate gross profit, one must first calculate the two components – COGS and net sales.

$< >$

Hope you understand

Answer 2

Answer:

Accordingly, Gross Profit on Sales = Net Sales - Cost of Goods Sold

Explanation:

1. Net Sales shall be calculated as = Gross Sales - Sales Return

2. Cost of Goods Sold shall be calculated as =

   Opening Stock of Raw Materials - Closing Stock of Raw Materials +      

   Purchase of Raw Materials

3. Gross Profit = Net Sales - Cost of Goods Sold