Violet Solutions Ltd

question 68

Multiple Choice

Violet Solutions Ltd. has net sales of $850 million, variable operating costs of $475 million, and fixed operating costs including depreciation of $100 million. What is the net operating income of Violet Solutions?

• A)$1,425 million
• B)$1,325 million
• C)$750 million
• D)$375 million
• E)$275 million

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Definitions:

Capital Account Balances

The amount recorded in the financial statements of an entity that represents the funds contributed by owners or partners, including retained earnings and additional paid-in capital.

Final Distribution

The process of giving the last allocation or payout, often related to winding up an estate, a trust, or corporate dividends.

Market Value

The present cost that an asset or service is being traded for in the market.

Book Value

The value of an asset as it appears on the balance sheet, calculated by subtracting any depreciation or amortization from its original cost.