The candy department experienced the following revenue and expenses during October: $$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 13,500 \
\hline \text { Cost of Goods Sold } & 8,200 \
\hline \text { Direct Operating Expenses } & 1,100 \
\hline \text { Indirect Operating Expenses } & 700 \
\hline
\end{array}$$ The candy departmental net income is:

Question

The candy department experienced the following revenue and expenses during October: $$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 13,500 \
\hline \text { Cost of Goods Sold } & 8,200 \
\hline \text { Direct Operating Expenses } & 1,100 \
\hline \text { Indirect Operating Expenses } & 700 \
\hline
\end{array}$$ The candy departmental net income is:

Quizplus · Accepted Answer

The departmental net income is calculated by subtracting the cost of goods sold and all operating expenses from sales. So, $13,500 (Sales) - $8,200 (Cost of Goods Sold) - $1,100 (Direct Operating Expenses) - $700 (Indirect Operating Expenses) = $3,500.

The Candy Department Experienced the Following Revenue and Expenses During