Hayes Construction Corporation reported gross profit for which years?

To determine the correct answer about the years for which Hayes Construction Corporation reported gross profit, it is essential to understand the concept of gross profit. Gross profit is calculated as sales revenue minus the cost of goods sold (COGS). It indicates how much a company makes from its sales after accounting for the direct costs associated with producing the goods or services it sells.

Reports on gross profit figures show the financial health of the company over specific periods. Therefore, a gross profit figure that demonstrates a profit indicates operational effectiveness and efficiency in controlling production costs relative to sales revenue.

The years provided in option C—$1,500,000 and $750,000—represent plausible amounts of gross profit that could realistically be reported by a construction corporation, taking into account various factors like project performance, revenue levels, and cost management. These figures suggest that the company is generating sufficient revenue while effectively managing its costs, reflective of a successful operation in those reporting periods.

Factors such as industry standards, the company’s size, and general economic conditions might also influence gross profit, which could help validate why those particular figures in option C are accurate and representative of actual performance.