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What is Operating Profit? Operating Profit is what remains after subtracting Operating Expenses from Gross Profit. For Boutique Couture: $360,000 Gross Profit - $270,000 Operating Expenses = $90,000 Operating Profit That gives the business an Operating Profit Margin of 15%, meaning 15 cents of every $1 of sales remains after covering both the direct and indirect costs of running the business. 👉 Watch the full Income Statement tutorial on YouTube via Accounting Stuff. #Accounting #OperatingProfi
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What is Operating Profit? Operating Profit is what remains after subtracting Operating Expenses from Gross Profit. For Boutique Couture: $360,000 Gross Profit - $270,000 Operating Expenses = $90,000 Operating Profit That gives the business an Operating Profit Margin of 15%, meaning 15 cents of every $1 of sales remains after covering both the direct and indirect costs of running the business. 👉 Watch the full Income Statement tutorial on YouTube via Accounting Stuff. #Accounting #OperatingProfi
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