Frederickson Office Supplies Recently Reported $12,500 of Sales,$7,250 of Operating

question 10

Multiple Choice

Frederickson Office Supplies recently reported $12,500 of sales,$7,250 of operating costs other than depreciation,and $1,250 of depreciation.The company had no amortization charges and no non-operating income.It had $8,000 of bonds outstanding that carry a 7.5% interest rate,and its federal-plus-state income tax rate was 40%.How much was the firm's taxable income,or earnings before taxes (EBT) ?

• A) $3,230.00
• B) $3,400.00
• C) $3,570.00
• D) $3,748.50
• E) $3,935.93

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Definitions:

Toyota Production System

An integrated socio-technical system developed by Toyota to efficiently organize manufacturing and logistics, including the interaction with suppliers and customers.

TPS

Stands for Transaction Processing System, a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.

JIT Partnerships

Refers to Just-In-Time partnerships, a collaboration between suppliers and manufacturers to ensure materials are delivered just in time for production, reducing inventory costs and enhancing efficiency.

Variability

Variability refers to the extent to which data points in a set differ from the average value.