If costs of goods sold is $560,000 and its gross profit rate is 20%, what is the gross profit?

A. $140,000.

B. $70,000.

C. $120,000.

D. $112,000.

A
Cost of goods sold = 80%
Sales = $560,000/.8 = $700,000
Gross Profit = .2 × $700,000 = $140,000

Business

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