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The net profit is calculated as  

Commerce
JAMB 2025

The net profit is calculated as

 

  • A. sales less purchases
  • B. gross profit less expenses
  • C. gross profit less purchases
  • D. sales less expenses
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Correct Answer: Option B
Explanation

Net profit is calculated as gross profit less expenses. Gross profit is the profit a company makes after deducting the costs
associated with making and selling its products, or the costs associated with providing its services. Expenses include items like
administrative costs, interest, taxes, and other costs not included in the cost of goods sold.


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