In a merchandising business, operating income plus operating expenses is equal to a. Cost of merchandise available for sale b. Gross profit c. Cost of merchandise sold d. Sales

b.Gross profit

Explanation:

here is an example of a very simple income statement:

Sales revenue                  $10,000

Cost of goods sold          ($5,000)

Gross profit                       $5,000

Operating expenses       ($3,000)

Operating income            $2,000

If you start backwards, operating profit + operating expenses = gross profit

net income = operating profit (EBIT) - interests - taxes

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