Candle in the Wind Is a Store for People Who

question 26

Multiple Choice

Candle in the Wind is a store for people who enjoy and collect candles to decorate their homes.Last year its net sales totaled $125,000 with $13,700 in taxes.The cost value of the candles it sold was $42,300.The only expenses that the operation has are salaries to the owner and one part-time assistant for $52,000,administrative expenses of $400,and utilities at $900.Calculate the net profit after tax for Candle in the Wind.

• A)$29,400
• B)$17,000
• C)$53,300
• D)$15,700
• E)$16,100

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Definitions:

Voluminous Paperwork

Refers to an overwhelming amount of paperwork or documents that are often complex and extensive.

Fixed Budget

A budget that sets forth expected revenue, expenses, and profit for a company over a specific period, based on the assumption of a fixed level of activity.

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.