The Following Information Relates to Marshall Manufacturing's Current Accounting Period

question 34

Multiple Choice

The following information relates to Marshall Manufacturing's current accounting period:. $\begin{array}{llr} \text { Raw materials used } &\$34,000\\ \text { Direct labor wages } &66,000\\ \text { Sales salaries and commissions } &50,000\\ \text { Depreciation on production equipment } &6,000\\ \text { Rent on manufacturing facilities } &4,000\\ \text {Administrative supplies and utilities } &10,000\\ \text { Sales revenue } &210,000\\ \text {Units produced } &10,000\\ \text { Unit sold } &10,000\\\end{array}$ Based on this information, what is the company's net income?

• A) $40,000
• B) $70,000
• C) $30,000
• D) $42,000

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Definitions:

Offline Brainstorming

A method of generating ideas by a group in a non-digital setting, typically through verbal or written communication.

Productivity

The efficiency at which individuals, companies, or economies produce goods or services, often measured as the amount of output per unit of input.

Sucker Effect

A phenomenon where individuals reduce their effort in group tasks to avoid feeling like they are being exploited or doing more work than others.

Free Riding

Free riding refers to the behavior of benefiting from the contributions of others in a group or community effort without contributing oneself.