Calculate Net Income Given the Following Information: fiXed Asset Turnover

question 247

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:

External Environment

Refers to factors outside of an organization that can impact its operation and success, including economic, political, social, technological, and legal factors.

Strategy Success

The achievement of predetermined objectives and goals through the effective implementation of a plan.

Performance Determinant

A factor that significantly influences the outcome or level of performance in a task or activity.

Process Reliability

The extent to which a process consistently produces the same results over time, ensuring stability and predictability in its outcomes.