The Whippleton Department had gross profit on sales of $120,000, contribution margin of $60,000, total direct expenses of $18,000, and total indirect expenses of $52,000. The Whippleton Department has

Question

Quizplus · Accepted Answer

To find 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 = $60,000 - $18,000 - $52,000
Net Income from Operations = $50,000
Therefore, the correct answer is C.

The Whippleton Department Had Gross Profit on Sales of $120,000