Wildhorse Co, accepted a national credit card for a $10600 purchase, The cost of the goods sold is $6600, The credit card company charges a 5% fee. What is the impact of this transaction on net operating income?

Answer 1

See below:

We deduct the credit card fee and cost of goods sold from the sales price to determine the impact on net operating income:

#color(white)(+)10,600color(white)(00)"Sales Price"# #color(white)(0)-6,600color(white)(00)"COGS"# #ul(color(white)(000)-530)color(white)(00)"Credit card processing fee"^1# #ul(ul(color(white)(0+)3,470))color(white)(00)"To Net Operating Income"#

#color(white)(0)^1 #Credit Card Processing Fee: #10,600xx.05=530#

By signing up, you agree to our Terms of Service and Privacy Policy

Answer 2

Julia Adams

The impact of the transaction on net operating income is a decrease of $530.

By signing up, you agree to our Terms of Service and Privacy Policy

Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.