Answer:
$21600
Step-by-step explanation:
Net income is calculated by deducting all company expenses from its total revenue. Net income is given by the formula:
Net income = Revenue - cost of goods sold - operating expenses - tax.
But Gross margin = gross profit = Revenue - cost of goods sold. Hence:
Net income = Gross margin - operating expenses - tax.
Substituting gives:
Net income = $50000 - $23000 - $5400
Net income = $21600
