ABC Manufacturing Company had a total revenue of $200,000 for the year. After accounting for the cost of goods sold (COGS), which amounted to $120,000, the company calculated a gross profit of $80,000. The company then incurred total operating expenses, including salaries, rent, and utilities, which added up to $42,000. Based on this information, calculate the net income for ABC Manufacturing Company.

What is the net income for ABC Manufacturing Company?

To calculate the net income for ABC Manufacturing Company, we can follow this basic formula:

\[
\text{Net Income} = \text{Gross Profit} - \text{Operating Expenses}
\]

From the information provided:

- **Gross Profit** = $80,000
- **Operating Expenses** = $42,000

Now, subtract the operating expenses from the gross profit:

\[
\text{Net Income} = 80,000 - 42,000 = 38,000
\]

So, the **net income** for ABC Manufacturing Company is **$38,000**.

Would you like further details or have any questions?

Here are 5 related questions to deepen your understanding:
1. How is gross profit different from net income?
2. What would the impact be if operating expenses increased by 10%?
3. How do taxes affect net income calculations?
4. How can ABC Manufacturing increase its net income in the future?
5. What is the significance of net income in evaluating a company’s financial health?

**Tip:** Always monitor both gross profit and operating expenses closely to maintain healthy net income.

ABC Manufacturing Company had a total revenue of $200,000 for the year. After accounting for the cost of goods sold (COGS), which amounted to $120,000, the company calculated a gross profit of $80,000. The company then incurred total operating expenses, including salaries, rent, and utilities, which added up to $42,000. Based on this information, calculate the net income for ABC Manufacturing Company. What is the net income for ABC Manufacturing Company?

Calculate the net income for ABC Manufacturing Company using the formula: Net Income = Gross Profit - Operating Expenses. Given a gross profit of $80,000 and operating expenses of $42,000, learn how to derive the net income, which is $38,000. This problem is suitable for students in Grades 8-10 and covers basic arithmetic and financial mathematics.

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