Gross profit is net sales less cost of bringing merchandise into the store

a. True

b. False

Answer:

The correct answer is letter "A": True.

Explanation:

Gross Profit is obtained from subtracting sales revenues from the costs of the goods sold with include the direct cost of raw materials, the labor involved in making the products, and shipping. What is left, the gross profit, tells management and other interested parties how much revenue remains after subtracting the cost of producing the goods.