In Its First Year of Operations,a Company Has Sales of $150,000,ending

question 37

Multiple Choice

In its first year of operations,a company has sales of $150,000,ending finished goods inventory of $10,000,variable manufacturing costs of $50,000,and fixed manufacturing costs of $30,000 for the year.The company pays 10% commission to its sales force and has fixed selling and administrative expenses of $25,000 annually.The company has no other variable expenses.Assuming the company uses direct costing,the net income for the year is

• A) $110,000.
• B) $95,000.
• C) $40,000.
• D) $13,000.

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Definitions:

Positional Power

The authority and influence that comes from the position one holds within an organization's hierarchy.

Coercive Power

A form of power based on the ability to deliver punishments or impose negative consequences to influence behavior.

Reward Power

The capability to offer rewards or positive incentives in order to influence the behavior of others or secure compliance.

Dynamic Process

A process characterized by constant change, activity, or progress, often requiring ongoing adaptation and management.