Answer:
$4,000
Explanation:
From the question above a company has a sales revenue of $10,000
The cost of goods sold is $4,500
The other operating expenses incurred by the company is $1,500
The first step is to calculate the gross profit
Gross profit = Sales revenue-Cost of goods sold
= $10,000-$1,500
= $8,500
The next step is to calculate the company's pre-tax income
Pre-tax income = Gross profit-operating expense
= $8,500-$4,500
= $4,000
Hence the company's pre-income tax is $4,000
