Refer to Figure 13-3

question 101

Multiple Choice

Refer to Figure 13-3. Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should EBP produce?

• A) 1,000
• B) 500
• C) 410
• D) 675
• E) 0

---

Definitions:

Net Income

The earnings left for a firm after deducting expenses, taxes, and all other costs from the total income.

Fair Market Value

The price at which an asset would sell in a competitive auction setting, representing the value between a willing buyer and seller with neither being under any compulsion to buy or sell.

Stockholders' Equity

The portion of a company's assets that belongs to shareholders after debts and liabilities have been settled.