Which of the following relationships is true?
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A. B. C. D.C
Gross profit = Net sales - COGS -
Operating profit = Gross Profit - Sales & General Expenses = EBDIT
Net Income = Earnings after depreciation, interest expense and taxes
= Operating profit - depreciation - interest expense - taxes
Since gross profit > operating profit > net income, "Gross profit margin > Operating profit margin > Net profit margin" is the correct choice.