calculate the net profit for an item sold for $35 that has a $10 cost of goods sold and 15% operating…

calculate the net profit for an item sold for $35 that has a $10 cost of goods sold and 15% operating expense cost. net profit = $?

calculate the net profit for an item sold for $35 that has a $10 cost of goods sold and 15% operating expense cost. net profit = $?

Answer

Explanation:

Step1: Calculate operating expense

Operating expense = Selling price × Operating - expense rate. The selling price is $35 and the operating - expense rate is 15% or 0.15. So, operating expense = $35×0.15 = $5.25.

Step2: Calculate net profit

Net profit = Selling price−Cost of goods sold−Operating expense. The selling price is $35, the cost of goods sold is $10, and the operating expense is $5.25. So, net profit = $35 - $10 - $5.25=$19.75.

Answer:

$19.75