Charlie's Chicken Has a Debt-Equity Ratio of 2

question 27

Multiple Choice

Charlie's Chicken has a debt-equity ratio of 2.05.Return on assets is 9.2 percent,and total equity is $560,000.What is the net income?

• A)$105,616
• B)$148,309
• C)$157,136
• D)$161,008
• E)$164,909

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Definitions:

Revenue Maximizer

Describes a strategy or approach focused on increasing the total revenue received, regardless of profits or costs.

Profit Maximizer

A strategy or process employed by businesses to increase their net profits to the highest possible level given their resources, constraints, and market conditions.

U-Shaped Average

This term seems unclear; possibly referring to the 'U-shaped' curve of the average cost, which decreases, reaches a minimum, and then increases with production volume.

Price Elasticity

Evaluating how price changes for a good translate into variations in consumer interest.