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1. Purchases
2. Operating Profit
3. Gross Profit
4. Net Profit
3. Gross profit is the perfect answer in this case .
Gross Profit............................
The answer is Gross Profit..
Sales - Cost of sales(cost of goods sold) = Gross profit
Gross Profit: Initial profit before general business expenses.
Option3 is the right answer.
Sales less cost of sales is equal to gross profit. Thus, choice #3 is the answer
3. Gross ProfitGross Profit is calculated by deducting cost of sales from sales amount, though it contains overheads and other expenses to be deducted.
Gross Profit = Sales- COGS
3. Gross Profit .................................................................................
Sales less Cost of Sales = Gross Profit
