During the current year, merchandise is sold for $23,680,000. The cost of the goods sold is $13,024,000.

Question:

During the current year, merchandise is sold for $23,680,000. The cost of the goods sold is $13,024,000.
a. What is the amount of the gross profit?
b. Compute the gross profit percentage (gross profit divided by sales).
c. When there is a gross profit, will the income statement always report an operating income? Explain.

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