Mail Order, Inc, suffered a fire loss at its single warehouse. During the six-month restoration period that followed, Mail Order's sales decreased from an expected $20 million to an actual $10 million, and (mainly because of extra expense for temporary relocation and rental expenses) expenses increased from an expected $10 million to an actual $15 million.
b. What would Mail Order's net income have been for the same six-month period if no loss had occurred?
b. If no loss had occurred, Mail Order's income would have been $20,000,000 - $10,000,000 = $10,000,000