Answer:
d. $950
Explanation:
Calculation to determine the NET INCOME
Sales $ 10,000.00
Cost of goods sold $ 6,000.00
Gross margin $ 4,000.00
($10,000-$6,000)
Selling and administrative expenses $ 750.00
Net operating income $ 3,250.00
($4,000-$750)
Interest expense $ 1,100.00
Net income before taxes $ 2,150.00
($3,250-$1,100)
Income taxes $ 1,200.00
Net income $ 950.00
($2,150-$1,200)
Therefore the NET INCOME will be $950
