The following data pertaining to a recent periods

Question

The following data pertaining to a recent period's operations are available :

Beginning Finished Goods Inventory: $12,000

Cost of Goods Manufactured : $36,000

Ending Finished Goods Inventory : $6,000

Gross Margin : 40% of sales

Administrative and selling expenses : $10,000

Question : Net operating income was ?

A) 10,000 B) 18,000 C) 70,000 D) 46,000 E