# What Is Gross Profit? - Definition, Formula & Calculation

Instructions:

question 1 of 3

### Which of the following are part of the formula for calculating gross profit?

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### 2. You are given the following information: Sales = \$7,000 Sales Returns and Allowances= \$800 Discounts= \$200 What are the net sales?

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Calculating gross profit is an important skill in business, and this quiz/worksheet will help you test your understanding of its formula and application.

## Quiz & Worksheet Goals

In these assessments you'll be tested on the calculation and components of:

• Gross profit
• Cost of Goods
• Net sales

## Skills Practiced

This quiz and worksheet allow students to test the following skills:

• Problem solving - use acquired knowledge to solve practice problems involving the calculation of gross profit
• Information recall - access the knowledge you've gained regarding the formula for calculating gross profit
• Knowledge application - use your knowledge to answer questions about net sales and cost of goods