The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent expense for store $18,000; • Loss on sale of property and equipment $6,600; • Cost of goods sold $22,200; • Depreciation expense $8,000; • Prepaid insurance $1,900. How much were Hale’s total expenses in calculating operating income?

Hale’s total expenses in calculating operating income is $57000

Explanation:

Operating income represents profit realized in carrying out Hale Company primary activities

Only expenses incurred in are considered in calculation of Hale`s Operating Income

Cost of Sales

Cost of goods sold                        22200              

Administration

Rent expenses for store                18000

Depreciation                                    8000

Selling and distribution expenses

Advertising                                       8800

Total Expenses                               57000

the answers are

a, b, c, & e.