Calculate the Net Profit Generated by Cabaye Inc

question 57

Multiple Choice

Calculate the net profit generated by Cabaye Inc.if it obtains a return of 12% from the owner's equity amounting to $675 million.

• A)$118 million
• B)$8.1 million
• C)$562 million
• D)$5.6 billion
• E)$81 million

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Definitions:

Goods Sold

Goods sold refers to the products that have been sold by a business, often measured within a specific accounting period.

Direct Materials

Direct materials refer to raw materials that can be directly attributed to the production of a specific product, considered a variable cost in manufacturing.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including costs related to materials, labor, and manufacturing overhead, within a specific period.

Ending Balance

The amount of money in an account at the end of a given period, after all transactions have been accounted for.