Question

The company gross profit is rs 1000000. company has paid salary or rs 300000. research and development expenses is rs 200000 and selling and distribution expenses of rs 200000. what will be the operating income?

Answer 1

Operating Income = Revenue - (COGS+Operating Expenses)

Ans: GP - (Salaries+R&D+S&D)

= 10,00,000 - (3,00,000 + 2,00,000 + 2,00,000)

= 3,00,000