Question

Determine the operating income using the following information: Sales $340,100 Cost of goods sold 252,000 Selling expenses 25,200 Administrative expenses 12,500 a.$62,900 b.$340,100 c.$88,100 d.$50,400

Answer 1

Operating income is $ 50,400

Step-by-step explanation:

Operating Income is Profit derived by the company from its primary activities

Calculation of Operating Income:

Sales 340,100

Less Costs of Goods Sold 252,000

Gross Profit 88,100

Less Operating Expenses

Selling Expenses 25,200

Administrative Expenses 12,500

Operating Income 50,400