The cost of goods sold and the SGA expenses of an organization are $60 million and $25 million,respectively.Its other operating expenses amount to $15 million.Determine the total operating income of the organization if it generates sales revenues of $150 million.

Question

Quizplus · Accepted Answer

Operating income is calculated as sales revenue minus the sum of cost of goods sold, SGA expenses, and other operating expenses. Thus, $150 million - ($60 million + $25 million + $15 million) = $50 million.

The Cost of Goods Sold and the SGA Expenses of an Organization