Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,operating

Multiple Choice

Use this information to answer the following question. $\begin{array}{c} \text {Alcorn \& Zeto Company}\\ \text { Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Revenues} &\\ \text {Net sales } &\$100,000\\ \text {Dividend income }& 8,750\\ \text { Total revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 37,750\\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 6,000 \\\text { Interest expense } & 6,250 \\ \text { Total costs and expenses } && 60,0000 \\\text { Income before income taxes } && \$48,750 \\\text { Income taxes } && 19,500 \\\text { Net income } && \$ 29,250 \\\end{array}\end{array}$
If the income statement were prepared in a multistep form,operating expenses would be

A) $46,000.
B) $16,000.
C) $22,250.
D) $40,000.