2. Total profit = operating profit+non-operating income-non-operating expenditure.
3. Net profit = total profit-income tax expense.
Extended data:
Economic profit has special uses in perfect competitive market and monopoly competitive market. Positive profit can attract more enterprises to enter the market, increase competition and push down the market equilibrium price, and exclude some uncompetitive enterprises from the market to achieve long-term equilibrium.
On the contrary, negative economic profits can eliminate some original enterprises in the market, because the supply decreases, the market equilibrium price will be pushed up and the long-term equilibrium will be achieved. The result of both cases is that the economic profit disappears among the manufacturers, and the total income of the manufacturers is equal to the lowest point of the average cost.
Positive economic profit is sometimes called excess profit.
The social profit brought by enterprise activities is the external economic effect of economic profit addition and subtraction. Enterprises may earn huge monetary profits, but external economic effects often make the results negative, and real social profits may be few.
For example, during the industrial revolution, large-scale production in factories brought low-cost and low-priced products, but in order to maximize profits, factory owners kept lowering production costs, resulting in low-paid child labor, improper treatment of industrial waste or pollutants and other social burdens.
Reference source Baidu Encyclopedia-Profit