Calculate the Net Income If the Net Margin Is 75

question 4

Multiple Choice

Calculate the net income if the net margin is 75% and sales is $160,000.

• A) $120,000
• B) $240,000
• C) $360,000
• D) $570,000
• E) $600,000

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Definitions:

Average Total Costs

The total expenses incurred in the process of producing or offering a good or service, divided by the quantity of goods or services produced or offered.

Average Variable Costs

The sum of all variable production costs divided by the total number of units produced.

Output

The amount of something produced by a person, machine, or industry.

Average Cost

The total cost divided by the quantity produced, measuring how much on average each unit of output costs to produce.