Net Operating Profit Is Defined as

question 11

Multiple Choice

Net operating profit is defined as

• A)Operating income minus income taxes.
• B)Sales minus variable costs.
• C)Contribution margin minus traceable fixed costs.
• D)Contribution margin minus traceable and allocated fixed costs.

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Definitions:

Retail Price

The total cost at which a product or service is sold to the consumer, including any markup for profit.

Olive Tree

A fruit-bearing tree native to the Mediterranean region, valued for its olives and olive oil.

Dollar Markup

The difference between the cost of an item and its selling price expressed in dollars, indicating the gross profit on the item.

Selling Price

The final amount at which a product or service is sold to the consumer.