Respuesta :
The change in operating income is $7,728.
If variable costs are 79% of sales, then 79% of $36,800 equals $29,072. The change in sales minus variable costs equals the change in operating income: $36,800 - $29,072 = $7,728.
What exactly is operating income?
- Operating income is a company's adjusted revenue after deducting all operating expenses and depreciation. The costs incurred in order to keep the business running are referred to as operating expenses.
Operating income formula
- Total Revenue - Direct Costs - Indirect Costs = Operating Income. OR.
- Operating income is calculated as the sum of gross profit minus operating expenses minus depreciation and amortization. OR.
- Operating income is calculated as Net Earnings + Interest Expense + Taxes.
- Non-operating income includes gains and losses (expenses) from activities or factors unrelated to the company's core business operations. Operating income is calculated by deducting the company's sales revenue from the cost of goods sold and all operating expenses.
- Rental income, parking fees, service changes, vending machines, laundry machines, and so on all contribute to real estate revenue. Operating expenses include all costs associated with the property's operation. Property management fees, insurance, utilities, property taxes, repairs, and maintenance are among them.
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