Question

If Company A has generated $10 million in revenue with $4 million in cost of goods sold (COGS) and $2 million in Operating

Expenses what is the with operating profit being $ million calculate the operoperating profit is $4 million.

Answer 1

The operating profit for Company A is calculated by subtracting both the COGS ($4 million) and the operating expenses ($2 million) from the total revenue ($10 million), resulting in an operating profit of $4 million.

Step-by-step explanation:

To calculate the operating profit for Company A, we must consider the revenue, cost of goods sold (COGS), and operating expenses. Starting with the revenue of $10 million, we subtract the COGS, which is $4 million, and the operating expenses of $2 million. Following this, the calculation for operating profit is:

Operating Profit = Revenue - COGS - Operating Expenses

Operating Profit = $10 million - $4 million - $2 million

Operating Profit = $4 million

This indicates that the operating profit for Company A is $4 million.