Answer:
The answer is $130,000
Explanation:
Selling and administrative expense - $40,000
Depreciation expense $70,000
Sales - $350,000
Interest expense - $30,000
Cost of goods sold - $110,000
Taxes -$ 17,500
Operating profit is the profit before interest and tax.
Sales----------------------------$350,000
Cost of Sales------ ---------($110,000)
Gross profit------------------$240,000
Expenses:
Selling and administrative
expense-----------------------($40,000)
Depreciation expense-----($70,000)
Profit before interest & tax--------------------------------------------------$130,000
