Operating income equals
A) sales revenue − cost of goods sold − selling and administrative expense
B) gross margin − selling expenses
C) sales revenue − cost of goods sold
D) sales revenue − selling and administrative expenses

Question

Quizplus · Accepted Answer

Operating income is the income generated from a company's regular business operations. It is calculated by subtracting the cost of goods sold and selling and administrative expenses from the sales revenue. Therefore, the correct formula for operating income is A) sales revenue – cost of goods sold – selling and administrative expense.

Operating Income Equals