Division T Reported Income from Operations of $900,000 and Total

question 122

Multiple Choice

Division T reported income from operations of $900,000 and total service department charges of $575,000.Therefore:

• A)net income was $325,000.
• B)the gross profit margin was $325,000.
• C)income from operations before service department charges was $1,475,000.
• D)consolidated net income was $325,000.

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Definitions:

Minimum Wage

The lowest legal wage that can be paid to most workers.

Compensating Differential

Additional wage or benefit that compensates workers for unpleasant, risky, or demanding work conditions.

Economic Income

The total value of all income earned, including both monetary and non-monetary gains, over a period of time.

Transfer Payment

Payments made by the government to individuals or other organizations without expecting a good or service in return.