Compute net income for the housewares department, when gross profit is $680,000, direct expenses are $237,000, indirect expenses are $90,000 and sales are $890,000.

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting both direct and indirect expenses from the gross profit. So, $680,000 (gross profit) - $237,000 (direct expenses) - $90,000 (indirect expenses) = $353,000.

Compute Net Income for the Housewares Department, When Gross Profit