Mofro's Computer Repair Shop Started the Year with Total Assets

question 57

Multiple Choice

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000.During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000.The net income reported by Mofro's Computer Repair Shop for the year was

• A)$100,000.
• B)$150,000.
• C)$200,000.
• D)$250,000.

---

Definitions:

Break-even Point

The stage at which total revenues equal total costs, resulting in neither profit nor loss for the business.

Picture Frame Store

A retail shop specializing in selling frames for artwork, photographs, and other decorative wall hangings.

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Unit Variable Costs

The costs that vary directly with the level of production or output.