Gross margin minus operating expenses equals income from operations on a multi-step income statement.

Name: Gross margin minus operating expenses equals income from operations on a multi-step income statement.
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Question

Quizplus · Accepted Answer

Gross margin (or gross profit) is calculated by subtracting the cost of goods sold from net sales. Income from operations is then calculated by subtracting operating expenses from the gross margin.

Gross Margin Minus Operating Expenses Equals Income from Operations on a Multi-Step