Question

a company makes $200,000 in a year and has $150,000 in production costs, leaving them with $50,000. the $200,000 represents_____

Answer 1

The $200,000 is a gross profit of the company but the operating costs in a year of the company is $150,000 that will be deducted from the gross profit the remaining net profit is only $50,000 for the company's year income.