Question

QUESTION 2 of 10: Your restaurant has a gross profit of $274,232, administrative expenses of $29,147 and marketing expenses of 32,64

What is the income from operations of your business?

OOOO

a) $25,345

b) $125,732

c) $185,085

d) $212,440

Submit

Answer 1

Given:

Gross profit = $274,232

Administrative expenses = $29,147

Marketing expenses = $32,645

Note: There is an error in the given question. Marketing expenses should be valued at $32,645 to match the answer correctly.

Computation:

Income from operations = Gross profit - Administrative expenses - Marketing expenses

Income from operations = $274,232 - $29,147 -$32,645

Income from operations = $274,232 - $61,792

Income from operations = $212,440

Therefore, Net income from operation is $212,440.