The excess of sales over cost of goods sold is

A.

Gross sales

B.

Gross profit

C.

Net profit

D.

Net sales

Correct answer is B

The gross profit formula is calculated by subtracting total cost of goods sold from total sales.Both the total sales and cost of goods sold are found on the income statement. Gross profit is a way to compare the cost of the goods your company sells and the income derived from those goods. It can be gotten as;

Gross profit = total sales - cost of goods sold