Business FinancesQuestion 295 of 1605
A contractor completes a job with a contract price of $120,000 and total job costs of $90,000. What is the gross profit?
a.$120,000
b.$90,000
c.$30,000
d.$210,000
Explanation
Gross profit = Contract Price − Job Costs = $120,000 − $90,000 = $30,000. Gross profit is the amount remaining to cover overhead and produce net profit.
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