Sapin SA classifies the following items for the year in the operating category: sales revenue 3,800,000; cost of sales 2,150,000; selling and administrative expenses 780,000; research and development 310,000; other operating income 45,000. It classifies outside that category the interest on a loan, 95,000, in financing, and the share of profit of an associate, 60,000, in investing (classification provided by the case). Calculate operating profit.
- Sales revenue
- 3,800,000
- Cost of sales
- 2,150,000
- Selling and administrative expenses
- 780,000
- Research and development
- 310,000
- Other operating income
- 45,000
- Loan interest (financing)
- 95,000
- Share of profit of the associate (investing)
- 60,000