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Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result, a.consolidated net income was $300,000 b.net income was $300,000 c.income from operations before service department charges was $1,650,000 d.the gross profit margin was $300,000

Respuesta :

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Answer:

Option C. Income from operations before service department charges was $1,650,000

Explanation:

Income from operation and the service department charges are when aggregated then we have gross income which is the income before the all the costs incurred or simply the gross amount that the company received on the sales.

Mathematically,

Gross Income or Income Before deductions = Income After Deductions + Service Department Charges

Here

Income after deductions is $975,000

And

Service department charges are $675,000

By putting values in the equation, we have:

Gross Income or Income Before deductions = $975,000 + $675,000

= $1,650,000  

Hence the option C is correct.

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