Question

A Food Company earns $52,000 in a month. Their operating expenses are $34,000. The remaining amount is ___________. This is called

$18,000; gross profit.

$86,000; net loss.

$1,529; gross margin.

$18,000; net profit.

Answer 1

D. $18,000; NET PROFIT

Explanation:

$52,000 - $34,000 = $18,000

It would be net profit because net income or net profit is the gross profit or gross margin minus the operating expenses. The operating expenses are given as $34,000 in this case

Gross profit/gross margin is net sales minus the cost of goods sold. This is same as Markup.

Answer 2

The difference between revenue and expenses is gross profit. The appropriate choice is ...

$18,000; gross profit