Haley Optics Manufactures Lens Used in Cameras, Binoculars, and Scientific

Multiple Choice

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment.It had sales of $300,000 during the last quarter.Its gross profit sold was $120,000.On an income statement, an accountant would classify the remaining $180,000 as:

A) operating expenses
B) production income
C) cost of production
D) cost of goods sold
E) net production costs