Net Income Is Gross Profit Less

question 144

Multiple Choice

Net income is gross profit less

• A)financing expenses.
• B)operating expenses.
• C)other revenues and losses.
• D)other income.

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Definitions:

Sales Mix

The ratio of various goods or services contributing to a company's overall sales.

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.

Sales Ratio

A metric that compares a particular figure or cost to the total sales, providing insight into various financial aspects of a business.