Question

how to calculate operating profit when gross profit is given?​

Answer 1

Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total revenue and dividing that number by total revenue. The top number in the equation, known as gross profit or gross margin, is the total revenue minus the direct costs of producing that good or service.

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Answer 2

Answer:

Operating profit is calculated by deducting Gross Profit and Operating expenses.

Some formulaes :

${\boxed{\frak{\bullet \: Operating \: profit \: = gross \: Profit \: - operating \: expenses}}}$

${\boxed{\frak{\bullet \: gross \: profit \: = net \: sales - cost \: of \:goods \: sold }}}$

${\boxed{\frak{\bullet \: net \: sales \: = gross \: sales - sales \: return }}}$

${\boxed{\frak{\bullet \: cost \: of \: goods \: sold = opening \: stock + net \: purchase + direct \: expenses - closing \: stock}}}$

Gross Profit :

The profit arising out of trading alone is called Gross Profit.

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