A company sold goods of worth $1 million, the manufacturing cost of the goods were $600,000. The transport used in the sale cost $100,000 and the wages paid during the process of sale were also $100,000. What is the gross and net profit?

Q. A company sold goods of worth $1 million, the manufacturing cost of the goods were $600,000. The transport used in the sale cost $100,000 and the wages paid during the process of sale were also $100,000. What is the gross and net profit?
(A) Gross Profit = $600,000 and Net Profit = $400,000
(B) Gross Profit = $400,000 and Net Profit = $600,000
(C) Gross Profit = $200,000 and Net Profit = $400,000
(D) Gross Profit = $400,000 and Net Profit = $200,000

The answer is: (D) Gross Profit = $400,000 and Net Profit = $200,000
Gross Profit = 1,000,000–600,000=$400,000
Net Profit = 1,000,000–600,000–100,000–100,000=$200,000
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