What is the operating profit formula based on the provided information?

Prepare for the Enterprise Rental Car Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The operating profit formula focuses on calculating the profit generated from core business operations, without factoring in non-operating income, taxes, or other expenses. The formula for operating profit can generally be described as total income minus the costs of operating a business (which can include variable costs and fixed costs, but not financial earnings from investments or other non-core activities).

In this context, total income minus breakeven makes sense, as breakeven indicates the point where total revenues equal total costs. Thus, anything above breakeven would contribute to operating profit. This highlights how much profit is realized from the operations after covering costs.

Other options focus on components or concepts that don't directly result in operating profit. For example, the average daily rate multiplied by days in a month calculates revenue, not profit. Days in a month multiplied by DE (which could refer to daily expenses) and ADR (average daily rate) combines elements but doesn't lead directly to operating profit either. Similarly, net income minus total expenses would provide a different metric, commonly referred to as net profit or net income rather than operating profit. Each of these alternatives does not embody the fundamental concept of operating profit as well as the correct choice does.

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