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What are the correct amounts missing from the condensed income statement of Batavia, Inc.? Batavia, Inc. Sales $ 8 6 5 , 0 0 0

What are the correct amounts missing from the condensed income statement of Batavia, Inc.?
Batavia, Inc.
Sales
$865,000
320,000
?
125,000
Cost of goods sold
Gross profit
Operating expenses
125,000
Operating income
?
a. Net income: $420,000; Gross profit: $740,000
b. Net income: $420,000; Gross profit: $545,000
c. Net income: $545,000; Gross profit: $545,000
d. Net income: $545,000; Gross profit: $740,000
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