The Bubba Corp

question 115

Multiple Choice

The Bubba Corp.had net income before taxes of $200,000 and sales of $2,000,000.If it is in the 50% tax bracket its after tax profit margin is:

• A) 5%
• B) 12%
• C) 20%
• D) 25%

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Definitions:

Money Income

The total earnings received by an individual or household, including wages, salaries, and other income forms, usually before taxes.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.

Good X

generally refers to an unspecified product or commodity in economic models or discussions.

Budget Line

Represents the combination of goods and services that a consumer can purchase with a given budget at set prices.