First Use Front-End Rounding to Write an Estimate of the Answer

question 193

Multiple Choice

First use front-end rounding to write an estimate of the answer, and then multiply fully to obtain an exact answer.
-

• A)Estimate: 1, exact: 3
• B)Estimate: 0.1, exact: 3.9
• C)Estimate: 4, exact: 4
• D)Estimate: 0.4, exact: 0.4

---

Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Sales

The revenue generated from goods or services sold by a company in the ordinary course of its business.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted; it contributes towards covering fixed costs and generating profit.

Administrative Expenses

Costs associated with the general management of a business, such as salaries of senior executives, legal and financial charges, marketing, and office supplies.