Calculate Net Income Given the Following Information: Fixed Asset Turnover

question 166

Multiple Choice

Calculate net income given the following information: fixed asset turnover = 4 times; profit margin = 20%; net fixed assets = $25,000.

• A) $16,000
• B) $18,000
• C) $20,000
• D) $22,000
• E) $24,000

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Definitions:

Geographic Pricing

A pricing strategy where the price of a product or service varies according to the geographic location of the buyer.

Single-Zone Pricing

A pricing strategy where a company charges the same price for its product or service, regardless of the geographical location of the customer.

Multiple-Zone Pricing

A pricing strategy where a company sets different prices for its products or services in different geographical areas based on local market conditions.

Promotional Pricing

A marketing strategy where temporarily reduced prices are used to increase short-term sales and visibility of a product or service.