Question

Gross profit_______ (Select all that apply.)

a. Is sometimes referred to as gross margin
b. Is often referred to as income from operations
c. Represents the seller's maximum ""cushion"" available to cover all other operating expenses before it is possible to have net income
d. Is an income statement subtotal that results from subtracting selling, general, and administration expenses from net sales

Answer 1

Gross profit is often referred to as gross margin, and it represents the seller's maximum "cushion" available to cover all other operating expenses before it is possible to have net income.

Step-by-step explanation:

Gross profit is often referred to as gross margin and is not the same as income from operations. It represents the seller's maximum "cushion" available to cover all other operating expenses before it is possible to have net income. Gross profit is an income statement subtotal that results from subtracting selling, general, and administration expenses from net sales.