Question

Bunny's Furniture Warehouse accepted a national credit card for a $3,300 purchase. The Cost of the Goods Sold is $1,300. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income

Answer 1

Answer:

$1,901

Explanation:

The impact of transaction on net operating income is shown below:-

Credit card sales = $3,300

Card fees = 3% × $3,300

= $99

Cost of the Goods Sold = $1,300

Net operating income = Sales - Cost of goods sold - card fees

= $3,300 - $1,300 - $99

= $1,901

Therefore for computing the impact of transaction on net operating income we simply applied the above formula.