Question

please check my answers below and correct me if i am wrong please

1. At Lexi Corp., sales revenue is $20 million, the cost of goods sold is $14 million, operating expenses are $3 million, and income taxes are $1 million. What is the company's operating income?
Select one:
A. $17 million
B. $3 million
C. $2 million
D. $6 million
E. None of these

2. A company has $3.25 million in revenue and has a revenue cost of $1 million. Which of the following statements is true?
Select one:
A. In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.25 million.
B. In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.25 million.
C. In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $1.75 million.
D. In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.75 million.
E. In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.75 million.

my answrs:
1.E
2. C

Answer 1

The 14M, the 3M and the 1M are all expenses
so what is 20 - (14+3+1) ??
I get 2 Million

Answer 2

yes i realized that, i miss calculated the numbers, for the second one i miss typed my answer, i meant A and D, i am very confused since in both cases the answer is right?