How is Operating Profit calculated for a business?

Operating Profit, often referred to as operating income, is a key financial metric that represents the profit a business makes from its core operations, excluding any income derived from other sources such as investments, interest, or sales of assets. It is typically calculated by subtracting operating expenses from gross income, where gross income is the revenue generated from sales after subtracting the cost of goods sold (COGS).

The correct approach for calculating Operating Profit is to consider the total gross income and account for the total expenses associated with running the core operations of the business. This means you would look at gross income and deduct all operating expenses, which usually include selling, general, and administrative expenses.

In the context of the provided options, the most relevant approach to calculate operating profit directly relates to understanding the relationship of income and expenses rather than looking at fleet size, total revenues without expenses, or revenue per day metrics. Therefore, identifying the correct method involves recognizing that none of the options presented align with the standard calculation of Operating Profit.

It's important to grasp that calculating Operating Profit requires careful attention to the specific financial figures related to a business's operations, ensuring that the proper expenses are deducted from gross income to yield an accurate depiction of operational efficiency.