The following information was reported on the income statement of Wagon Wheel Company.
|
Sales revenues |
$450,000 |
|
Cost of goods sold |
200,000 |
|
Selling, general, and administrative expenses |
150,000 |
|
Interest expense |
30,000 |
Wagon Wheel”s gross profit and operating income would be
|
Gross profit |
Operating income |
|
a. $300,000 |
$70,000 |
|
b. $250,000 |
$70,000 |
|
c. $250,000 |
$100,000 |
|
d. $100,000 |
$70,000 |