Answer:
Option (b) is correct.
Explanation:
Given that,
Income from operations = $400,000
Total service department charges = $200,000
The income from operations already takes into account the service department charges which means that it is already deducted. Hence, if we add the total service department charges to the income from operations then we can get the income from operations before service department charges.
So, the income from operations before service department charges is as follows:
= Income from operations + Total service department charges
= $400,000 + $200,000
= $600,000
