Answer:
The answer is A. $270,000
Explanation:
Gross profit is a measure of profitability. It can be derived by deducting cost of sales(cost of goods sold) from the net sales or revenue i.e Net sales(revenue) minus cost of sales:
Sales or Revenue: 45,000 units at $15
45,000 x 15
=$675,000
Cost of sales:
45,000units = ($450,000 / 50,000 units) × 45,000 = $405,000
Therefore, gross profit is:
$675,000 - $405,000
=$270,000
