What is the gross profit of a company with sales of $695,000 and cost of goods sold of $278,000?

The gross profit of a company is determined by subtracting the cost of goods sold (COGS) from the total sales revenue. In this scenario, the company has total sales of $695,000 and a cost of goods sold of $278,000.

To calculate the gross profit, you can use the following formula:

Gross Profit = Sales - Cost of Goods Sold

Substituting the given values into the formula:

Gross Profit = $695,000 - $278,000

Now, performing the subtraction:

Gross Profit = $417,000

Therefore, the gross profit for the company is $417,000.

This figure indicates the amount of money the company retains from its sales after deducting the costs associated with producing the goods sold, which is essential for covering operating expenses, investing in growth, and generating profits.