Suppose a Firm Has Net Income of $8 on Sales

question 12

Multiple Choice

Suppose a firm has net income of $8 on sales of $40,fixed assets of $75,and total assets of $90.The firm retains 50% of its earnings.If the firm is operating at 80% capacity,what are the full capacity sales?

• A)$40
• B)$48
• C)$50
• D)$72

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Definitions:

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Exit Incentives

Benefits offered to employees to encourage voluntary departure, typically used by organizations looking to reduce workforce size.

Medium-Term

A period typically extending from one year to five years, often used to describe goals, planning, or investment horizons.

Layoff

The temporary or permanent termination of employees due to economic downturns, restructuring, or other organizational changes.