A project sells for $164,000 and costs $123,000. What gross profit is earned?
Correct Answer
C) $41,000.
Gross profit is selling price minus cost: $164,000 - $123,000 = $41,000.
Why This Is the Correct Answer
Gross profit is selling price minus cost: $164,000 - $123,000 = $41,000.
Why the Other Options Are Wrong
Option A: $31,000.
$31,000. is below the supported result for gross profit; it likely uses the wrong base, period, or account bucket.
Option B: $36,000.
$36,000. is below the supported result for gross profit; it likely uses the wrong base, period, or account bucket.
Option D: $287,000.
$287,000. is above the supported result for gross profit; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Selling and price live in different drawers; Reviewing Completed tells which opens.
Reference Hint
Study anchor (closed-book): memorize Gross profit from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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