Given the Following Information: Sales = $450; Costs = $400;

question 337

Multiple Choice

Given the following information: sales = $450; costs = $400; tax rate = 34%. Assuming costs run at a constant percentage of sales, if sales rise by 10% next year, what will net income be?

• A) $3.30
• B) $33.00
• C) $36.30
• D) $146.00
• E) $197.22

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Definitions:

Revenue Variances

The difference between actual revenue and expected revenue over a specific period, often analyzed to understand performance.

Spending Variances

Differences between the actual amount spent on something and its budgeted (or planned) amount, often analyzed for cost control purposes.

Flexible Budget

A budget that adjusts or flexes with changes in volumes or activity levels, helping managers to better compare actual to budgeted performance.

Jeep Tours

Guided tours offered using jeep vehicles, often in rugged terrains or places of scenic beauty.