QuestionJuly 30, 2025

An item is sold for 8 that has a 3 cost of goods sold and 30% operating expense cost. Use the formula below to calculate the net profit. First, enter the sales price. Net Profit=Sales Price - COGS - Operating Expenses Net Profit= [?]- [ ]- [ ]

An item is sold for 8 that has a 3 cost of goods sold and 30% operating expense cost. Use the formula below to calculate the net profit. First, enter the sales price. Net Profit=Sales Price - COGS - Operating Expenses Net Profit= [?]- [ ]- [ ]
An item is sold for 8 that has a 3 cost
of goods sold and 30%  operating
expense cost. Use the formula below
to calculate the net profit.
First, enter the sales price.
Net Profit=Sales Price - COGS - Operating Expenses
Net Profit= [?]- [ ]- [ ]

Solution
4.5(279 votes)

Answer

2.6 Explanation 1. Calculate Operating Expenses Operating expenses are 30\% of the sales price. Calculate as 0.3 \times 8 = \2.4. 2. Apply Net Profit Formula Use **Net Profit = Sales Price - COGS - Operating Expenses**. Substitute values: Net\ Profit = 8 - 3 - 2.4.

Explanation

1. Calculate Operating Expenses<br /> Operating expenses are $30\%$ of the sales price. Calculate as $0.3 \times 8 = \$2.4$.<br />2. Apply Net Profit Formula<br /> Use **Net Profit = Sales Price - COGS - Operating Expenses**. Substitute values: $Net\ Profit = 8 - 3 - 2.4$.
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