What represents sales less the cost of goods sold less operating expenses?

The correct answer, which is Operating Income, represents the profit a company makes from its regular business operations after deducting the cost of goods sold (COGS) and operating expenses. This metric provides a clear view of how well the company is performing in its core business activities, exclusive of non-operating income or expenses such as taxes and interest.

Operating income is calculated as sales revenue minus the cost of goods sold and operating expenses, thus giving a straightforward assessment of operational efficiency. This total reflects the earnings generated from the company’s standard business activities without factoring in additional financial activities or external costs.

In contrast, net income encompasses all revenues and expenses, including non-operating income and interest payments, while gross profit only accounts for sales revenue minus COGS, not considering operating expenses. Earnings per share is a measure used to indicate the profitability of a company on a per-share basis but does not directly represent operating performance.