PLEASE HELP! If a company reported total sales of $59,919, cost of goods sold of $21,112, gross income of $38,807, operating expenses of $18,005 and a gross profit ratio of 65%, what was the company's operating income? (Round to the nearest dollar)

a) -$18,005
b) $20,802
c) $25,225
d) $38,807

b) $20,802

Explanation:

Operating income, also called operating profit, is the income after deducting the operating expenses. In other words, it is gross profit minus operating expenses.

Operating expenses exclude taxes and interest.

Operating income will be calculated using the formula.

Gross profit -operating expenses = operating income

i.e,. Revenue- Costs of goods sold -operating expenses = operating income

=$59,919 - $21,112, -$18,005 =operating income

Operating income = $20, 802

16 miles because first you have to subtract your flat rate of $2 from $10, which will leave you left with $8. If it’s $0.50 per mile then divide that by the amount of money you have remaining after the flat rate deduction (8/0.50). After dividing you will find that you have enough money to travel 16 miles.