What is Operating profit?

1.	What is Operating profit?
Answer» Operating profit is the profit earned through the normal operations and activities of the business. Operating profit can be calculated as follows: Operating profit = (Gross profit – Operating expense) + Operating income. Or = Net Profit + Non-operating expenses – Non-operating income. Examples of non-operating expenses are loss on sale of assets, interest paid etc. Non-operating incomes are dividend received, Profit on sale of assets.

Answer»

Operating profit is the profit earned through the normal operations and activities of the business.

Operating profit can be calculated as follows:

Operating profit = (Gross profit – Operating expense) + Operating income.

= Net Profit + Non-operating expenses – Non-operating income.

Examples of non-operating expenses are loss on sale of assets, interest paid etc. Non-operating

incomes are dividend received, Profit on sale of assets.

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What is Operating profit?

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