Computing Gross Profit and Operating Income

Following is an excerpt from the Packer Inc. year-end trial balance dated December 31, 2020.

Selected Adjusted Trial Balance Amounts
Acct. No.	Description	Debit	Credit
400	Sales revenue		$105,000
402	Consulting revenue		1,500
404	Gain on sale of investments		4,200
510	Cost of goods sold	$37,500
511	Selling expense	16,500
512	Salaries expense	4,500
520	Rent expense	3,000
526	Insurance expense	750
528	Depreciation expense	1,500
530	Research and development expense	7,500
535	Loss on sale of investments	2,700
540	Interest expense	750
542	Income tax expense	2,925

Required

Hint: Consider consulting revenue nonoperating revenue.

a. Compute gross profit for 2020.
b. Compute operating income for 2020.