![]() ![]() Operating Expense = $40.00 million – $10.50 million – $16.25 million.Operating Expense = Revenue – Operating Income – COGS Operating Expense is calculated using the formula given below Operating Income = $6.00 million + $2.00 million + $2.50 million.Operating Income (EBIT) = Net Income + Interest Expense + Taxes Operating Income is calculated using the formula given below The following financial information is available about the company:ĬOGS is calculated using the formula given belowĬOGS = Direct Labor + Raw Material Cost + Manufacturing Overhead Let us take the example of a company to illustrate the computation of operating expenses using the alternate approach. Therefore, the operating expense of the company during the given period was $5.75 million. Operating Expense = Sales Commission + Advertising Expense + Salaries + Depreciation + Rent + Utilities Operating Expense is calculated using the formula given below According to the latest annual report, the following information is available from the income statement of the company:Ĭalculate the operating expense of the company based on the above information. Let us take the example of a manufacturing company to illustrate the computation of operating expenses. You can download this Operating Expense Formula Excel Template here – Operating Expense Formula Excel Template Operating Expense Formula – Example #1 ![]()
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