Question

Please how to get the answer and explain the steps to get the correct answer listed at the bottom in parenthesis

Question 4 0 / 6 points 1%) helpful? n 2017, the BowWow Company purchased 12,582 units from its supplier at a cost of $10 per unit. BowWow sold 12,613 units of its product in 2017 at a price of $ 21 per unit. BowWow began 2017 with $ 816,698 in inventory (inventory is carried at a cost of $10 per unit). Using this information, compute BowWow's gross profit for 2017 idends paid Record your answer rounded to the nearest dollar. Do not include a dollar sign or commas in your answer. For example, record $1,234,567.89 as 1234568.</font color> Answer: 42,000 $2,547,000 - 749,833 x (138,743)

Answer 1

Gross Profit for the year 2017

Gross Profit = Sales – Cost of goods sold

Sales = Number of units sold x Selling price per unit

= 12,613 Units x $21 per unit

= $264,873

Cost of goods sold = Number of units sold x Cost per unit

= 12,613 Units x $10 per unit

= $126,130

Therefore, The Gross Profit = Sales – Cost of goods sold

= $264,873 - $126,130

= $138,743

“Hence, the Gross Profit for the year 2017 would be $138,743”