Li Retailing Reported the Following Items for the Current Year

question 107

Multiple Choice

Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000.Li's gross profit is equal to

• A) $770,000.
• B) $1,070,000.
• C) $1,100,000.
• D) $1,500,000.

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Definitions:

Pay Plan

A structure outlining how employees are compensated, including salary levels, bonuses, and increments.

Differential Piece Rate

A compensation system where workers are paid based on the quantity of work produced, with rates that can vary depending on performance levels reached.

Standard Hour Plans

Compensation packages that offer wages based on the number of hours worked, adjusted by efficiency or predetermined standards.

Piecework Plans

A compensation system where employees are paid based on the quantity of work completed, rather than on the number of hours worked.