Find the gross profit for Mr. Palmer. His merchandise cost him $12,000 and his income for the month was $45,000. His expenses were only $17,000.

Calculate the gross profit and net profit - choose the correct combination from the list below. You will select 2 answers - one for gross profit and one for net profit

To find Mr. Palmer's gross profit and net profit, let's break down the calculations.

### 1. **Gross Profit:**
Gross profit is the difference between total income (revenue) and the cost of goods sold (merchandise cost).

\[
\text{Gross Profit} = \text{Income} - \text{Merchandise Cost}
\]
Given:
- Income = \$45,000
- Merchandise Cost = \$12,000

\[
\text{Gross Profit} = 45,000 - 12,000 = 33,000
\]

### 2. **Net Profit:**
Net profit is the gross profit minus all expenses.

\[
\text{Net Profit} = \text{Gross Profit} - \text{Expenses}
\]
Given:
- Gross Profit = \$33,000
- Expenses = \$17,000

\[
\text{Net Profit} = 33,000 - 17,000 = 16,000
\]

### Results:
- **Gross Profit**: \$33,000
- **Net Profit**: \$16,000

Now you can select the correct combination:
1. **Gross Profit**: \$33,000
2. **Net Profit**: \$16,000

Would you like more details or have any further questions?

### Related questions:
1. What is the difference between gross profit and net profit?
2. How would a change in expenses impact net profit?
3. What other expenses should be included when calculating net profit?
4. How does the cost of goods sold affect gross profit?
5. How can Mr. Palmer improve his net profit in the future?

**Tip**: Reducing expenses or increasing income both help improve net profit.

Find the gross profit for Mr. Palmer. His merchandise cost him $12,000 and his income for the month was $45,000. His expenses were only $17,000. Calculate the gross profit and net profit - choose the correct combination from the list below.

Learn how to calculate Mr. Palmer's gross profit and net profit based on his monthly income of $45,000, merchandise cost of $12,000, and expenses of $17,000. This problem demonstrates essential profit calculation concepts suitable for students in Grades 6-8.

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