The Nellie Company Has Provided the Following Information: Operating Expenses

question 9

Multiple Choice

The Nellie Company has provided the following information: Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000;
Interest expense was $17,000;
Extraordinary loss was $29,000;
Income tax expense was $199,000.
What was Nellie's operating income?

• A) $514,000.
• B) $468,000.
• C)$497,000.
• D)$298,000.

Learn strategies to reframe problems into opportunities for growth.

Distinguish between helpful and unhelpful ways of thinking about challenges.

Understand the role of stress hormones in managing stress.

Acknowledge the importance of integrating affective and cognitive learning in problem-solving.

---

Definitions:

Break-Even Chart

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold.

Independent Agents

Independent agents are professionals who sell or represent products or services from various providers, rather than being tied to a single company, allowing them to offer a range of options to clients.

Company Salesforce

The division of a company responsible for sales operations and management, tasked with achieving sales targets and developing customer relationships.

Selling Costs

Expenses associated with marketing and selling a product or service, including advertising, sales personnel salaries, and commissions.