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A company has sales revenue of $225.000, cost of goods sold 595,000, operating expenses of $56,000, and other expenses of $3,
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Answer #1

The correct answer is option D i.e. $ 74,000

The same has been illustrated below

Operating Income (Sometime referred as EBIT) = Total revenue – COGS - all operating expenses.

Operating Income = $ 225,000 - $ 95,000 - $ 56,000 = $ 74,000.

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