Violet Solutions Ltd. has net sales of $850 million, variable operating costs of $475 million, and fixed operating costs including depreciation of $100 million. What is the net operating income of Violet Solutions?
A)$1,425 million
B)$1,325 million
C)$750 million
D)$375 million
E)$275 million

Question

Quizplus · Accepted Answer

Net operating income is calculated as net sales minus variable operating costs minus fixed operating costs. So, $850 million - $475 million - $100 million = $275 million.