Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profit
Example:
Sales xxxx
Less:Purchases xxxx
Gross Profit xxxx
Less:
Selling Expenses xxxx
Admin Expenses xxxx
other expenses xxxx
Operating Profit xxxxx
If there is no selling, admin or other expenses then gross profit and operating profit will be same.
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