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i think Gross profit Will decrease
Sales Les: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income
Positive Operating income will result if gross profit exceeds operating expenses
Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profitExample:Sales xxxxLess:Purchases xxxxGross Profit xxxxLess:Selling Expenses xxxxAdmin Expenses xxxxother expenses xxxxOperating Profit xxxxxIf there is no selling, admin or other expenses then gross profit and operating profit will be same.
A reason for the decrease in net profit margin is when an increase in business running expenses incur.
i think Gross profit Will decrease
Operating expense is a loss, but is used in calculating overall profit.
Sales Les: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income
Positive Operating income will result if gross profit exceeds operating expenses
Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profitExample:Sales xxxxLess:Purchases xxxxGross Profit xxxxLess:Selling Expenses xxxxAdmin Expenses xxxxother expenses xxxxOperating Profit xxxxxIf there is no selling, admin or other expenses then gross profit and operating profit will be same.
A reason for the decrease in net profit margin is when an increase in business running expenses incur.
business operating for a profit
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
Profit is calculated by subtracting operating costs from gross revenues.
theft
Gross operating profit, or GOP, describes the current line 'Income After Undistributed Operating Expenses' under the Uniform System of Accounts for the Lodging.
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