Question

how to calculate income from operations?

Answer 1

There can be various ways to calculate Income from Operations. Income = revenues (-) expenses.
Income from operations = Revenues from operations (-) Operating expenses.

Samples as to how calculate income from operations is provided below:

Sample A

Revenues:
Sales revenue	$          20,000.00
Service Revenue	$          10,000.00
Total revenues	$          30,000.00
Expenses:
Cost of Goods Sold	$             2,000.00
Selling & administrative expenses	$             6,000.00
Other expenses	$             1,000.00
Total Expenses	$             9,000.00
Net Income [Income from operations]	$          21,000.00

Sample B

Sales	$          30,000.00
(-) Cost of Goods Sold	$          20,000.00
Gross Profits	$          10,000.00
(-) Operating expenses	$             5,000.00
Income from Operations	$             5,000.00

Sample C

Revenues (sales/service)	$          20,000.00
(-) Variable cost	$             8,000.00
Contribution Margin	$          12,000.00
(-) Fixed Cost	$             8,000.00
Income from operations	$             4,000.00