The photography department in a department store experienced the following revenue and expenses during October: $$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 6,500 \
\hline \text { Cost of Goods Sold } & 2,800 \
\hline \text { Direct Operating Expenses } & 200 \
\hline \text { Indirect Operating Expenses } & 1,300 \
\hline
\end{array}$$ The photography departmental net income is:

Question

The photography department in a department store experienced the following revenue and expenses during October: $$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 6,500 \
\hline \text { Cost of Goods Sold } & 2,800 \
\hline \text { Direct Operating Expenses } & 200 \
\hline \text { Indirect Operating Expenses } & 1,300 \
\hline
\end{array}$$ The photography departmental net income is:

Quizplus · Accepted Answer

The net income is calculated as Sales - Cost of Goods Sold - Direct Operating Expenses - Indirect Operating Expenses = $6,500 - $2,800 - $200 - $1,300 = $2,200.

The Photography Department in a Department Store Experienced the Following