Profit & Loss Challenge
Calculate gross profit, operating profit, and operating margin from business sales, cost of sales, and expenses.
Business accounting puzzle
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Instructions, device progress and accessibility
Choose difficulty and Practice or UTC Daily challenges. Solve the accounting questions, then press Check answer. Hints and Undo mark the round assisted. Scores save locally; no account or real stock data is required.
Local progress is checked when play begins.
How to play Profit & Loss Challenge
Calculate gross profit, operating profit, and operating margin from business sales, cost of sales, and expenses. Each problem has its own business scenario and is checked against the accounting formula. Start at Easy and increase difficulty when ready. The daily challenge uses the same questions for each date and difficulty.
Accounting concept and formula
Revenue $5,000 minus cost of goods sold $2,000 gives gross profit $3,000. After $1,000 in operating expenses, operating profit is $2,000 and the operating margin is 40%.
Gross profit and operating profit are different. In this simplified game, tax and interest are excluded.
Worked example
Revenue $5,000 minus cost of goods sold $2,000 gives gross profit $3,000. After $1,000 in operating expenses, operating profit is $2,000 and the operating margin is 40%.
Common mistakes to avoid
Gross profit and operating profit are different. In this simplified game, tax and interest are excluded. Always identify which line item belongs in the formula, verify the sign of a gain or loss, and check that your final answer uses the indicated unit.
Frequently asked questions
What is gross profit?
Sales revenue minus the cost of goods sold.
What is operating margin?
Operating profit divided by sales revenue, multiplied by 100.