The Whippleton Department had gross profit on sales of $120,000, contribution margin of $102,000, total direct expenses of $18,000, and total indirect expenses of $52,000. The Whippleton Department has:

Question

Quizplus · Accepted Answer

Net Income from Operations = Contribution Margin - Total Direct Expenses - Total Indirect Expenses
Net Income from Operations = $102,000 - $18,000 - $52,000
Net Income from Operations = $32,000 
Therefore, the Whippleton Department has a net income from operations of $32,000.

The Whippleton Department Had Gross Profit on Sales of $120,000