Lowellson Company Had Sales of $200,000, Net Income of $10,000

question 28

Multiple Choice

Lowellson Company had sales of $200,000, net income of $10,000, and an asset base of $300,000. Its margin is

• A)66.7%.
• B)5.0%.
• C)3.3%.
• D)150.0%.

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Definitions:

Incentive Pay

A form of compensation designed to reward employees for achieving certain performance targets or milestones, aiming to motivate higher levels of output.

Ethical Issues

Moral challenges and dilemmas that arise in the context of professional and personal conduct.

Scanlon Plan

An incentive plan designed to encourage cooperation, involvement, and sharing of benefits among employees through improved performance and productivity.

Gainsharing

Group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.