If Gross Profit is 120,000 and Expenses are 60,000, Net Profit equals?

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

If Gross Profit is 120,000 and Expenses are 60,000, Net Profit equals?

Explanation:
Net profit is the amount left after deducting expenses from gross profit. Gross profit covers the cost of making the goods or delivering the service, while expenses are other operating costs like salaries, rent, and administration. So, with 120,000 of gross profit and 60,000 of expenses, net profit = 120,000 − 60,000 = 60,000. This shows how much profit remains after paying those costs. If expenses were equal to gross profit, net profit would be zero; if expenses were higher, there would be a loss.

Net profit is the amount left after deducting expenses from gross profit. Gross profit covers the cost of making the goods or delivering the service, while expenses are other operating costs like salaries, rent, and administration. So, with 120,000 of gross profit and 60,000 of expenses, net profit = 120,000 − 60,000 = 60,000. This shows how much profit remains after paying those costs. If expenses were equal to gross profit, net profit would be zero; if expenses were higher, there would be a loss.

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