Question

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's operating income?

a. $4,000

b. $2,000

c. $9,500

d. $6,000

Answer

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