26. A company made the following transactions last year:

• Bought goods for resale, cost £8,000
• Wages, cost £12,000
• Rent, cost £6,000
• Heat, Light & Power, cost £3,000
• Sales, £40,000

A. Operating Profit is £32,000

B. Operating Profit is £19,000

C. Operating Profit is £11,000

D. Operating Profit is £27,000

Answer : C

Operating Profit, or “net profit”, is the profit left after expenses have been paid: