Compute Net Income for the Housewares Department, When Gross Profit

question 45

Multiple Choice

Compute net income for the housewares department, when gross profit is $680,000, direct expenses are $237,000, indirect expenses are $90,000 and sales are $890,000.

• A) -$210,000
• B) $443,000
• C) $590,000
• D) $353,000

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Definitions:

Product Benefits

The positive outcomes or advantages that a consumer receives from using a product, which can include functional, emotional, and social benefits.

Long-Term Customers

Clients or customers who have been purchasing from or engaging with a business for an extended period, indicating loyalty and sustained revenue.

BCG Matrix

A strategic analysis tool that classifies business units or products into four categories (Stars, Cash Cows, Question Marks, Dogs) based on their market growth and market share.

GE/McKinsey

A strategic business tool developed by McKinsey & Company for General Electric to evaluate business portfolio and make investment decisions.