A sole trader's net sales were ₦320,000 and the cost of goods sold was ₦200,000. Selling expenses amounted to ₦35,000 and administrative expenses to ₦25,000. What is the net profit?

Gross profit = Net sales − Cost of goods sold = ₦320,000 − ₦200,000 = ₦120,000. Net profit = Gross profit − Total expenses = ₦120,000 − ₦35,000 − ₦25,000 = ₦60,000. Option C represents gross profit, while option B omits administrative expenses.