Calculate the costume jewelry department net income given the following: $$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 1,300 \
\hline \text { Direct operating expenses } & 300 \
\hline \text { Indirect operating expenses } & 250 \
\hline \text { Cost of goods sold } & 1,000 \
\hline
\end{array}$$

Question

Calculate the costume jewelry department net income given the following: $$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 1,300 \
\hline \text { Direct operating expenses } & 300 \
\hline \text { Indirect operating expenses } & 250 \
\hline \text { Cost of goods sold } & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Net income is calculated by subtracting the total expenses (direct operating expenses, indirect operating expenses, and cost of goods sold) from sales. Total expenses = $300 (direct) + $250 (indirect) + $1,000 (cost of goods sold) = $1,550. Sales = $1,300. Net income = $1,300 - $1,550 = -$250.

Calculate the Costume Jewelry Department Net Income Given the Following