Question

If the net sales of Namibia Bottling Company are N$100 000 and the Cost of sales is N$20 000, calculate the Gross Profit

Answer 1

Answer:

The Gross Profit = N$ 80 000

Step-by-step explanation:

Given :

Net sales = N$ 100 000

Cost of sales = N$ 20 000

Find :

The Gross Profit

Solution :

The formula for Gross Profit :

Gross Profit = Sales - Cost of Goods Sold

OR

Gross Profit = Revenue − Cost of Goods Sold

⇒ 100 000 - 20 000

⇒ 80000

The Gross Profit = N$ 80 000

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★ Additional Details :

★ Gross profit :

• Gross profit is the profit a company builds up after removing the costs connected to manufacturing and selling its products.

• It also includes removing the costs caused by providing its services.

• Gross Profit is also called Gross income.

Answer 2

$\huge\bold{\mathbb{QUESTION}}$

If the net sales of Namibia Bottling Company are $\tt N\ \,100,\!000$ and the Cost of sales is $\tt N\ \,20,\!000,$ calculate the Gross Profit.

$\huge\bold{\mathbb{GIVEN}}$

• Net Sales $=\tt N\ \,100,\!000$

• Cost of sales $=\tt N\ \,20,\!000$

$\huge\bold{\mathbb{TO\:FIND}}$

The Gross Profit.

$\huge\bold{\mathbb{FORMULA}}$

$\boxed{\boxed{\boxed{\tt Gross\,Profit=(Net\,Sales-Cost\,of\,Sales)}}}$

$\huge\bold{\mathbb{SOLUTION}}$

Putting the formula, let's find out the Cross Profit.

$\tt Gross\:Profit$

$=\tt (Net\,Sales-Cost\,of\,Sales)$

$=\tt (N\ \,100000-N\ \,20000)$

$=\underline{\boxed{\pink{\tt N\ \,80000}}}$

$\huge\bold{\mathbb{HENCE}}$

Gross Profit $=\tt N\ \,80,\!000$

$\huge\bold{\mathbb{THEREFORE}}$

The Cross Profit is $\tt N\ \,80,\!000.$

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$\huge\bold{\mathbb{EXPLORE\:\, MORE}}$

Gross Profit refers the profit made by a company excluding the costs of the manufacture of the products.

We can calculate the Gross Profit using the formula $\implies$

$\tt Gross\,Profit=(Net\,Sales - Cost\:of\:Sales)$

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Net Sales refer to sum obtained after excluding a company's returns, allowances, and discounts from its gross sales.

We can calculate the Net Sales using the formula $\implies$

$\tt Net\,Sales=\{Gross\,Sales - (Returns+ Allowances +Discounts)\}$

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Cost of Sales refer to amount spent by a company on the manufacture of its products.