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Calculation of Operating profit
- a)Operating Profit = Gross Profit – (Office Admn. Expenses+wages exp.)
- b)Operating Profit = Gross Profit – (Office Admn. Expenses+selling and distribution exp.)
- c)Operating Profit = Gross Profit – (Factory Admn. Expenses+selling and distribution exp.)
- d)Operating Profit = Gross Profit – (Office Admn. Expenses+direct exp.)
Correct answer is option 'B'. Can you explain this answer?
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Calculation of Operating profita)Operating Profit = Gross Profit &ndas...
Subtract the cost of goods sold from gross revenue to determine gross profit. ... Subtract your total operating expenses from your gross profit to calculate your operating profit. Divide your operating profit by your gross revenue to calculate your operating profit margin.
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Calculation of Operating profita)Operating Profit = Gross Profit &ndas...
- Operating Expenses
b) Operating Profit = Total Revenue - Cost of Goods Sold - Operating Expenses
c) Operating Profit = Net Sales - Cost of Goods Sold - Operating Expenses - Depreciation - Amortization - Interest Expense
d) Operating Profit = Net Income + Interest Expense + Tax Expense
Note: The calculation of operating profit may vary depending on the specific financial reporting standards and the inclusion/exclusion of certain expenses or income items.
b) Operating Profit = Total Revenue - Cost of Goods Sold - Operating Expenses
c) Operating Profit = Net Sales - Cost of Goods Sold - Operating Expenses - Depreciation - Amortization - Interest Expense
d) Operating Profit = Net Income + Interest Expense + Tax Expense
Note: The calculation of operating profit may vary depending on the specific financial reporting standards and the inclusion/exclusion of certain expenses or income items.
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Calculation of Operating profita)Operating Profit = Gross Profit – (Office Admn. Expenses+wages exp.)b)Operating Profit = Gross Profit – (Office Admn. Expenses+selling anddistribution exp.)c)Operating Profit = Gross Profit – (Factory Admn. Expenses+selling anddistribution exp.)d)Operating Profit = Gross Profit – (Office Admn. Expenses+direct exp.)Correct answer is option 'B'. Can you explain this answer?
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