The following information is available for Isla Company for the month of May. How much is the profit for the month?
A) $0
B) $10,000
C) $20,000
D) $30,000
E) $35,000

Question

The following information is available for Isla Company for the month of May. How much is the profit for the month? 
A) $0 
B) $10,000 
C) $20,000 
D) $30,000 
E) $35,000

Quizplus · Accepted Answer

The profit for the month can be calculated as follows: 
Revenue - Cost of Goods Sold - Operating Expenses = Profit

Revenue = $90,000
Cost of Goods Sold = $20,000
Operating Expenses = $50,000
Profit = $90,000 - $20,000 - $50,000 = $20,000

The Following Information Is Available for Isla Company for the Month