calculate the net profit for an item sold for $10 that has a $4 cost of goods sold and 10% operating expense…

calculate the net profit for an item sold for $10 that has a $4 cost of goods sold and 10% operating expense cost. net profit = $?

calculate the net profit for an item sold for $10 that has a $4 cost of goods sold and 10% operating expense cost. net profit = $?

Answer

Answer:

$5$

Explanation:

Step1: Calculate operating expense

Operating expense = Selling price $\times$ Operating - expense rate. Given selling price = $$10$ and operating - expense rate = $10%=0.1$. So, operating expense = $10\times0.1=$1$.

Step2: Calculate net profit

Net profit = Selling price - Cost of goods sold - Operating expense. Cost of goods sold = $$4$, selling price = $$10$, and operating expense = $$1$. Then net profit = $10 - 4-1=$5$.