Question

A company reports Gross margin of $100,000, Cost of goods sold of $70,000, and Selling and administrative expenses of $45,000. Net operating income (loss) is ______.

Answer 1

The company incurs net operating loss of  -$15,000 having reported gross margin initially.

What is net operating income?

Net operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses.

Net Operating income or loss is computed as :

= Total Revenue - Cost of Goods Sold - Operating Expenses

= $100,000 - $70,000 - $45,000

= -$15,000

Therefore, the net operating loss for the company is -$15,000

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