The Following Accounts Are Taken from the December 31,Year 4

question 175

Multiple Choice

The following accounts are taken from the December 31,Year 4 financial statements of a company. What is the amount of net income for Year 4?

• A)$3,825
• B)$1,825
• C)$10,300
• D)$5,625

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Department Contribution Margin

A measure of a department's profitability, calculated as the difference between its sales and variable costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company's core operations.

Direct Departmental Expenses

Costs that can be directly attributed to a specific department within an organization, such as salaries of departmental staff.