Question

Splish Brothers Inc. accepted a national credit card for a $11200 purchase. The cost of the goods sold is $7200. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?

Answer 1

Net operating income will increase by $3664.

Step-by-step explanation:

Credit card sales = $11.200

Card fees = 3% * $11.200 = $336

Cost of goods sold = $7.200

Net operating income = Sales - Cost of goods sold - card fees

Net operating income = $11.200 - $7.200 - $336 = $3664.

So, net operating income will increase by $3664.