Question

The following financial information was summarized from the accounting records of Hickory Corporation's Northern division for the current year ended December 31: Total Operating Expenses $ 20,100 Net Sales Revenue 74,000 Cost of Goods Sold 30,900 The income from operations for the division is:

Answer 1

Net operating income= $23,000

Step-by-step explanation:

Giving the following information:

Total Operating Expenses $20,100

Net Sales Revenue $74,000

Cost of Goods Sold $30,900

To calculate the net operating income, we need to use the following formula:

Net operating income= sales - COGS - Operating expense

Net operating income= 74,000 - 30,900 - 20,100

Net operating income= $23,000