GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a business’s net profit if it has $882, 750 in income, $291, 400 in operating expenses, and $238, 930 in cost of goods?
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$471, 350
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$232, 420
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$352, 420
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$523, 820
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Explanation:
Detailed explanation-1: -Net Profit margin = Net Profit ⁄ Total revenue x 100 Net profit is calculated by deducting all company expenses from its total revenue. The result of the profit margin calculation is a percentage – for example, a 10% profit margin means for each $1 of revenue the company earns $0.10 in net profit.
Detailed explanation-2: -The operating profit formula is: Revenue-Operating Costs-Cost of Goods Sold (COGS)-Other Day-to-Day Expenses = Operating Profit.
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