Final answer:
Karen's net income last month was $1475.
Step-by-step explanation:
Karen's net income can be calculated by subtracting her total expenses and cost of goods from her income. Net income is the amount of money left after deducting all expenses and costs from the total income. In this case, Karen's net income is calculated as follows:
Net Income = Income - (Total Expenses + Cost of Goods)
Net Income = $5400 - ($3000 + $925)
Net Income = $5400 - $3925
Net Income = $1475
Therefore, Karen's net income last month was $1475.