ABC Company accepted a national credit card for a €5,000 purchase.The cost of the goods sold is €4,000.The credit card company charges a 3% fee.What is the impact of this transaction on net operating income?

Question

Quizplus · Accepted Answer

The cost of goods sold is €4,000, so the gross profit is €1,000. The credit card company charges a 3% fee on the purchase of €5,000, which is €150. Therefore, the net operating income decreases by €150, resulting in a net operating income of €850 (€1,000 - €150). Thus, the correct answer is C, as it shows an increase of €850 in net operating income.

ABC Company Accepted a National Credit Card for a €5,000