During August 2022, Baxter's Supply Store generated revenues of $60,000.The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $4,000.The company also had rent revenue of $1,000 and a gain on the sale of a delivery truck of $2,000. Baxter's operating income for the month of August 2022 is

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Operating income is calculated as total revenues from operations minus operating expenses. Baxter's operating revenues are $60,000, and operating expenses are $36,000 (cost of goods sold) + $4,000 (operating expenses), totaling $40,000. Therefore, operating income is $60,000 - $40,000 = $20,000. Rent revenue and gain on sale are not included in operating income.

During August 2022, Baxter's Supply Store Generated Revenues of $60,000