A merchandiser will have income from operations of exactly $0 when
A) net sales equals cost of goods sold.
B) cost of goods sold equals gross profit.
C) operating expenses equal net sales.
D) gross profit equals operating expenses.

Question

Quizplus · Accepted Answer

Income from operations is calculated as gross profit minus operating expenses. Therefore, when gross profit equals operating expenses, the income from operations will be $0.

A Merchandiser Will Have Income from Operations of Exactly $0