Determine the operating income using the following information: Sales $340,100 Cost of goods sold 252,000 Selling expenses 25,200 Administrative expenses 12,500 a.$62,900 b.$340,100 c.$88,100 d.$50,400

Operating income is $ 50,400

Explanation:

Operating Income is Profit derived by the company from its primary activities

Calculation of Operating Income:

Sales                                                                    340,100                                        

Less Costs of Goods Sold                                 252,000

Gross Profit                                                            88,100

Less Operating Expenses

Selling Expenses                                                   25,200

Administrative Expenses                                       12,500

Operating Income                                                 50,400