Business FinancesQuestion 1195 of 1605
A contractor's gross profit is $120,000 and overhead is $95,000. What is his net profit?
a.$215,000
b.$25,000
c.$120,000
d.$95,000
Explanation
Net profit = gross profit - overhead = $120,000 - $95,000 = $25,000. Gross profit covers overhead first; what remains is net profit.
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