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17 May, 22:03

Bramble Corp. accepted a national credit card for a $10200 purchase. The cost of the goods sold is $6200. The credit card company charges a 2% fee. What is the impact of this transaction on net operating income?

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Answers (2)
  1. 17 May, 22:57
    0
    It reduces the net operating income by $2,040

    Explanation:

    The charge of 2% on sales is part of the selling and distribution expense which would be deducted from the gross profit to get the operating profit or net income / (loss).

    The credit card charge amounts to

    = 2% * $102,000

    = $2,040

    As such, the charge by the credit card company reduces net operating income by $2,040.
  2. 18 May, 01:47
    0
    The impact of the this transaction on the net operating income = $ 10200 - $ 6200 - (0.02 * $ 10200) = $ 3796
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