The amount of gross profit that Hayes should report for 2016 is $900,000.
In order to calculate gross profit, the below given formula is used.
Gross profit = Revenue - Costs incurred
Gross profit = (4,500,000 * 60%) - 1,800,000
Gross profit = 2,700,000 - 1,800,000
Gross profit = $900,000
Gross profit of a company indicates the total gain made by company by selling goods and services after accounting for the cost of goods. Thus, the value of gross profit is located on income statement of the company.
Hence, for the year 2016, the amount of gross profit that Hayes should report is $900,000.
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