Asked by Logan Robinson on Jun 25, 2024
Verified
If Net Sales is $10,500, Cost of Goods Sold is $5,400, Gross Profit is $5,100 and Operating Expenses are $1,800, what is the Net Income from Operations?
A) $6,900
B) $3,300
C) $1,800
D) $5,100
Gross Profit
The difference between total revenue and the cost of goods sold, representing the profitability of a company's core activities before overhead.
Operating Expenses
The costs associated with the day-to-day operations of a business, excluding the cost of goods sold.
- Comprehend the principle of Gross Profit and the methodology for its computation.
Verified Answer
SG
Skreeechis GamingJul 02, 2024
Final Answer :
B
Explanation :
Net Income from Operations is calculated as Gross Profit minus Operating Expenses. Given Gross Profit is $5,100 and Operating Expenses are $1,800, subtracting these gives $5,100 - $1,800 = $3,300.
Learning Objectives
- Comprehend the principle of Gross Profit and the methodology for its computation.