Determining Gross Profit

During the current year, merchandise is sold for $726,000. The cost of the goods sold is $515,460.

a. What is the amount of the gross profit? $fill in the blank 1

b. Compute the gross profit percent. Round to the nearest whole number. fill in the blank 2%

c. Which of the following is true, based on the above information?

The net income is $495,000.The company may have a net income or net loss depending upon the amount of operating expenses.If operating expenses are greater than gross profit, there will be a net income.None of these answers is correct.