Able Company accepted a national credit card for a $5000 purchase. The cost of the goods sold is $3000. The credit card company charges a 2% fee. What is the impact of this transaction on net operating income?

Question

Quizplus · Accepted Answer

The net operating income increases by the sales revenue minus the cost of goods sold and the credit card fee: $5000 - $3000 - ($5000 * 2%) = $1900.

Able Company Accepted a National Credit Card for a $5000