After gross profit is calculated, operating expenses are deducted to determine: Group of answer choices gross margin. gross profit on sales. profit (loss). sales margin.
Question
After gross profit is calculated, operating expenses are deducted to determine: Group of answer choices
gross margin.
gross profit on sales.
profit (loss).
sales margin.
Solution
After gross profit is calculated, operating expenses are deducted to determine:
Profit (loss).
Here's how you can calculate it:
Step 1: Calculate Gross Profit Gross profit is calculated by subtracting the cost of goods sold from net sales.
Step 2: Deduct Operating Expenses After you have the gross profit, you subtract the operating expenses.
The result is the profit or loss. If the result is positive, it's a profit. If it's negative, it's a loss. This is often referred to as the "bottom line" because it's typically the last line on the income statement.
Similar Questions
Profit will result if gross profit exceeds: Group of answer choices cost of sales. operating expenses. purchases. cost of goods sold plus operating expenses.
Gross margin is calculated asGroup of answer choicesnet sales revenues minus fixed costs.operating revenues minus costs of goods sold.recurring revenues minus costs of goods sold.net sales revenues minus variable costs.net sales revenues minus costs of goods sold.
Gross profit is:Group of answer choicesthe amount left over after cost of goods sold is subtracted from net salesnet sales less selling expensessales less sales discountsnet sales less operating expenses
Gross profit ratio is computed by dividing gross profit by:Group of answer choicesfinancial expenses.cost of sales.net sales.operating expenses.
The Sales of a company minus its Cost of Goods Sold are equal to:Group of answer choicesthe gross profit.the operating expenses.the net profit.the variable expenses.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.