Last year, sam’s swimming pool cleaning had a gross profit of $105,355 and net income of $72,010. calculate sam’s operating expenses for last year. a. $3,335 b. $33,345 c. $17,734 d. $177,345

Net profit, also referred to as the bottom line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs. It is the actual profit without inclusion of working expense in the calculation of gross profit.

Net Profit = gross profit – expenses

72,010 = 105,355 – expenses

Expenses = 105355 – 72010 = $33,345 is the operating expenses

(B) $33,345

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