Andre's Bakery Has Sales of $687,000 with Costs of $492,000

question 71

Multiple Choice

Andre's Bakery has sales of $687,000 with costs of $492,000.Interest expense is $26,000 and depreciation is $42,000.The tax rate is 35 percent.What is the net income?

• A)$42,750
• B)$44,450
• C)$82,550
• D)$86,450
• E)$124,550

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Definitions:

Global Market Entry

Strategies and methodologies businesses use to enter international markets, including exports, franchising, and direct investment.

Frito-Lay's

A subsidiary of PepsiCo that manufactures and sells a wide range of snack foods including chips and crisps.

Licensing

Involves granting permission to an individual or entity to use intellectual property, such as patents, trademarks, or technology, under agreed terms and conditions.

Low-Risk

Pertains to investments or decisions that have a relatively small chance of resulting in financial loss or negative outcomes.