Question

The following financial information was summarized from the accounting records of Bisco Corporation for the year ended Dec. 31:

Bread Division
Cost of Goods Sold $ 90,000
Total Operating Expenses 27,400
Net Sales Revenue 170,000

The gross profit and income from operations for the Division are:

$80,000 gross profit and $52,600 operating income
$52,600 gross profit and $80,000 operating income
$80,000 gross profit and $32,600 operating income
$170,000 gross profit and $52,600 operating income

Answer 1

$80,000 gross profit and $52,600 operating income

Step-by-step explanation:

Given that,

Cost of Goods Sold = $ 90,000

Total Operating Expenses = $27,400

Net Sales Revenue = $170,000

Gross profit = Net Sales Revenue - Cost of Goods Sold

= $170,000 - $90,000

= $80,000

Operating Income = Gross profit - Total Operating Expenses

= $80,000 - $27,400

= $52,600

Therefore, the gross profit and income from operations for the Division are $80,000 and $52,600, respectively.