Department A had gross profit on sales of $29,000, contribution margin of $19,800, total direct expenses of $9,200, and total indirect expenses of $7,900. Department A has:

Question

Quizplus · Accepted Answer

To calculate the net income from operations, we need to subtract the total direct and indirect expenses from the contribution margin. 
Net income from operations = Contribution margin - Total direct expenses - Total indirect expenses 
Net income from operations = $19,800 - $9,200 - $7,900 = $2,700 
Therefore, the correct option is (B) a net income from operations of $11,900.

Department a Had Gross Profit on Sales of $29,000, Contribution