The 2014 Net Income of MNO Was $300,000,and 100,000 of Its

question 112

Multiple Choice

The 2014 net income of MNO was $300,000,and 100,000 of its common shares were outstanding during the entire year.In addition,outstanding options existed to purchase 10,000 common shares at $10 per share.These options were granted in 2012 and none had been exercised by December 31,2014.MNO earned interest at 8% and had a 50% tax rate.The amount,which should be shown as MNO's diluted earnings per share for 2014,is (rounded to the nearest cent) .

• A) $2.69
• B) $2.73
• C) $2.76
• D) $2.80

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Definitions:

Marginal Productivity

The additional output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Complements In Production

Goods that are produced together or their production levels are directly linked; an increase in the production of one leads to an increase in the production of the other.

Substitute Resources

Alternative inputs or resources that can be used in place of another in the production process.

MRP

Material Requirements Planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes.