Question

Mallory sells hats. Last month, Mallory had an income of $4,000, her cost of goods was $1,000, and her total expenses were $2,000. What was Mallory's net income?

Answer 1

$2000

Explanation:

If she has 2000 dollars of expenses, she will have to subtract that to get her net income. 4000-2000 is 2000, so her net income is $2000.

Answer 2

$1,000

Explanation:

Mallory's net income is calculated by subtracting her cost of goods and total expenses from her income.

Net income = Income - Cost of goods - Total expenses

Net income = 4,000 - 1,000 - 2,000

Net income = 1,000

Therefore, Mallory's net income last month was $1,000.