Which of the following equations correctly describes how to calculate gross profit? a. gross profit = (net sales) - (cost of goods sold) b. gross profit = (cost of goods sold) - (net sales) c. gross profit = (net income) - (operating expenses) d. gross profit = (operating expenses) - (net income)

Option A is right

Step-by-step explanation:

Option A is right

Gross profit = Net sales - cost of goods sold

Gross profit also known as sales-purchases -factory overhead  is the profit a company makes after deducting the costs associated with making and selling its products, services.

In income statement of a company sales revenue is shown from this is subtracted purchases and other factory or manufacturing costs to get gross profit.

Formula for calculating gross profit is

=Net sales revenue -Cost of goods sold

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step-by-step explanation: