Denali Limited, a manufacturing company, had the following income statement information:
|
Revenue |
$4,000,000 |
|
Cost of goods sold |
$3,000,000 |
|
Other operating expenses |
$500,000 |
|
Interest expense |
$100,000 |
|
Tax expense |
$120,000 |
Denali’s gross profit is equal to
a. $280,000.
b. $500,000.
c. $1,000,000.