Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/practice-operating-income

Operating income

Separate operating costs from a warehouse gain and interest expense.

Updated Sep 13, 2026 Review due Dec 13, 2026

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A company reports $900 thousand of customer revenue and $540 thousand of cost of revenue. Selling and administrative expenses total $150 thousand. It also reports a $35 thousand gain on a warehouse sale and $30 thousand of interest expense. What is operating income?

Choose the best answer. a $245 thousand b $210 thousand c $180 thousand d $360 thousand

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Answer: b

Operating income is $210 thousand ($900 − $540 − $150). The warehouse gain and interest expense enter later subtotals.