Find (A) the Gross Profit, (B) the Net Income Before

question 24

Multiple Choice

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes.
-MidState Machinery has a cost of goods sold of $90,000, operating expenses of $66,000, taxes of $9,000, and net sales of $288,000.

• A)(a)$24,000 (b)$132,000 (c)$123,000
• B)(a)$222,000 (b)$132,000 (c)$123,000
• C)(a)$24,000 (b)$198,000 (c)$189,000
• D)(a)$198,000 (b)$132,000 (c)$123,000

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Definitions:

Fixed Proportions

A production condition where inputs must be used in constant ratios to each other, without substitution possibilities, to produce a particular output.

Demand Functions

Mathematical representations that describe how the quantity demanded of a good or service changes in response to price changes and other factors.

Income

the total amount of money received by an individual or group over a specified period, often derived from work, property, or investments.

Homothetic Preferences

A situation in consumer theory where preference ratios are consistent across different income levels or price changes.