Determining Gross Profit During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). Round to the nearest whole number. % c. When will the income statement report net income? If operating expenses are less than gross profit. If gross profit is positive. If operating expenses are more than gross profit. If revenues exceed cost of sales. None of these choices