A merchandiser will earn an operating income of exactly $0 when
A)gross margin equals operating expenses.
B)net sales equals cost of goods sold.
C)cost of goods sold equals gross margin.
D)operating expenses equal net sales

Question

Quizplus · Accepted Answer

Operating income is equal to gross margin minus operating expenses. Therefore, if gross margin equals operating expenses, the operating income will be zero.

A Merchandiser Will Earn an Operating Income of Exactly $0