If revenue is $9,000 and cost of goods sold is $1,200, what is gross income?

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Multiple Choice

If revenue is $9,000 and cost of goods sold is $1,200, what is gross income?

Explanation:
Gross income (gross profit) is the amount left after covering the cost of goods sold from the revenue. It’s calculated by subtracting COGS from revenue. Here, 9,000 minus 1,200 equals 7,800. The revenue alone is 9,000, the cost of goods sold alone is 1,200, and adding them together doesn’t represent profitability. So the correct gross income is 7,800.

Gross income (gross profit) is the amount left after covering the cost of goods sold from the revenue. It’s calculated by subtracting COGS from revenue. Here, 9,000 minus 1,200 equals 7,800. The revenue alone is 9,000, the cost of goods sold alone is 1,200, and adding them together doesn’t represent profitability. So the correct gross income is 7,800.

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