If income is 5000, cost of goods sold is 1500, and expenses are 1200, what is net income?

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Multiple Choice

If income is 5000, cost of goods sold is 1500, and expenses are 1200, what is net income?

Explanation:
Net income is what remains after subtracting all costs from revenue. With revenue of 5000, subtract the cost of goods sold 1500 to get 3500, then subtract expenses 1200 to reach 2300. Thus the net income is 2300. This fits because net income = revenue minus COGS minus expenses. The total costs are 1500 + 1200 = 2700, so 5000 − 2700 equals 2300; the other numbers would require different total costs.

Net income is what remains after subtracting all costs from revenue. With revenue of 5000, subtract the cost of goods sold 1500 to get 3500, then subtract expenses 1200 to reach 2300. Thus the net income is 2300. This fits because net income = revenue minus COGS minus expenses. The total costs are 1500 + 1200 = 2700, so 5000 − 2700 equals 2300; the other numbers would require different total costs.

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