The following information relates to Nebula, Inc

Sales Revenue $240,000
Cost of Goods Sold 160,000
Interest Revenue 10,000
Operating Expenses 40,000
Sales Discounts 20,000
Sales Returns and Allowances 7,000

Calculate the operating income.

A) $13,000
B) $70,000
C) $240,000
D) $23,000

A .Sales Revenue $240,000
Sales Discounts -20,000
Sales Returns and Allowances -7,000
Net Sales $213,000
Cost of Goods Sold -160,000
Gross Profit $53,000
Operating Expenses -40,000
Operating Income $13,000