Question

At his comic book store, Korey’s Comics, Korey sells approximately $3,250 in comic books each month. But as a comic book dealer, Korey only pays $1,285 for these comic books. Korey’s monthly operating expenses, including labor, are $875.

Calculate Korey’s monthly net income.
a.
$1,090
b.
$1,965
c.
$2,375
d.
$2,840

Answer 1

Revenue $3,250 − cost of goods $1,285 = gross profit $1,965.
Gross profit $1,965 − operating expenses $875 = net income $1,090.

Answer: a. $1,090