The Good Light Is a Store for People Who Enjoy

question 31

Multiple Choice

The Good Light is a store for people who enjoy and collect candles to decorate their homes.Last year its net sales totalled $90,500 with $7,761 in taxes.The 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 $27,000,administrative expenses of $400,and utilities at $900.Calculate the net profit after tax for The Good Light.

• A) $12,139
• B) $21,142
• C) $27,661
• D) $54,200
• E) $10,073

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Definitions:

Margin

The difference between the selling price of a product and its cost, often expressed as a percentage of the selling price.

Division

A distinct part of a larger company or organization that operates semi-independently, focusing on a specific set of products, services, or market segment.

Investment Opportunity

A potential venture or asset that presents the possibility for financial growth or returns.

ROI

Return on Investment, a financial ratio indicating the profitability of an investment relative to its cost.