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XYZ Company accepted a national credit card for a $3,000 purchase. The cost of the goods sold is $1,800. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?

User Theon
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Final answer:

The impact of the transaction on net operating income is an increase of $1,110, calculated by subtracting the cost of goods sold ($1,800) and the credit card fee ($90) from the revenue generated ($3,000).

Step-by-step explanation:

To determine the impact of this transaction on net operating income, we need to consider the revenue generated, the cost of goods sold (COGS), and the credit card fee. The XYZ Company made a sale of $3,000, which will be added to its revenue. However, the cost of goods sold is $1,800, which will be subtracted from the revenue to calculate the gross profit. Additionally, the credit card company charges a 3% fee on the sale amount, which in this case is $3,000 x 3% = $90. When we subtract both the COGS and the credit card fee from the revenue, we find the impact on net operating income.

The calculation looks like this:

  • Revenue from sale: $3,000
  • Cost of Goods Sold: -$1,800
  • Credit Card Fee: -($3,000 x 3%) = -$90
  • Impact on Net Operating Income: $3,000 - $1,800 - $90 = $1,110

Therefore, the net operating income will increase by $1,110 as a result of this transaction.

User Andrew Li
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