What is the formula to calculate operating income?
A) sales revenue - selling and administrative expenses
B) gross margin - selling expenses + selling and administrative expenses
C) sales revenue - cost of goods sold + selling and administrative expenses
D) sales revenue - cost of goods sold - selling and administrative expenses

Question

Quizplus · Accepted Answer

Operating income is calculated by subtracting both the cost of goods sold and selling and administrative expenses from sales revenue.

What Is the Formula to Calculate Operating Income