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28 November, 00:37

Splish Brothers Inc. accepted a national credit card for a $11200 purchase. The cost of the goods sold is $7200. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?

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  1. 28 November, 02:14
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    Net operating income will increase by $3664.

    Explanation:

    Credit card sales = $11.200

    Card fees = 3% * $11.200 = $336

    Cost of goods sold = $7.200

    Net operating income = Sales - Cost of goods sold - card fees

    Net operating income = $11.200 - $7.200 - $336 = $3664.

    So, net operating income will increase by $3664.
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