6. A company's gross profit rate is computed by:

a. dividing net sales by gross profit.

b. subtracting gross profit from net sales.

c.subtracting cost of goods sold from net sales.

d. dividing gross profit by net sales.

7. A merchandiser will earn a gross profit of exactly $0 when?

a. net sales equals cost of goods sold

b. cost of goods sold equals total operating expenses

c. total operating expenses equal net sales

d. gross profit equals total operating expenses

8. A merchandiser will earn an operating income of exactly $0 when?

a. net sales equals cost of goods sold

b. cost of goods sold equals gross profit

c. total operating expenses equal net sales

d. gross profit equals total operating expenses