Compute net income for the housewares department,when gross profit is $650,000,direct expenses $235,000,indirect expenses are $90,000 and sales are $875,000.

Question

Quizplus · Accepted Answer

Net income is calculated as Gross Profit minus Direct Expenses minus Indirect Expenses. 
Using the given values: 
Net Income = $650,000 - $235,000 - $90,000 
Net Income = $325,000

Therefore, the correct answer is D) $325,000.

Compute Net Income for the Housewares Department,when Gross Profit Is