Ea2.
lo 2.1park and west, llc, provides consulting services to retail merchandisers in the midwest. in 2019, they generated $720,000 in service revenue. their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. if operating expenses for the year were $302,000 what was their net income?

$130,500

Explanation:

Given that,

service revenue = $720,000

Total cost (fixed and variable) per client = $2,500

Served = 115 clients during the year

operating expenses = $302,000

Gross profit:

= Service revenue - Total cost

= $720,000 - ($2,500 × 115)

= $720,000 - $287,500

= $432,500

Net income = Gross profit - operating expenses

                    = $432,500 - $302,000

                    = $130,500

explanation:

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