The Kringel Company Provides the Following Information -Refer to the Figure

question 86

Multiple Choice

The Kringel Company provides the following information:
$\begin{array}{lr}\text { Sales }(200,000 \text { units) } & \$ 500,000 \\\text { Manufacturing costs: } & \\\text { Variable } & 170,000\\\text { Fixed } &30,000 \\\text { Selling and administrative costs: } & \\\text { Variable } &80,000 \\\text { Fixed } & 20,000\end{array}$
-Refer to the figure.What is the net income for Kringel?

• A)$50,000
• B)$200,000
• C)$250,000
• D)$500,000

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Definitions:

Double Taxation

A taxation principle referring to income taxes that are paid twice on the same source of earned income, often seen in corporate dividends.

Limited Liability

A legal structure for a business where the owners' personal assets are protected from the company's debts and liabilities, limiting their risk to the amounts they have invested in the company.

Mutual Agency

A legal principle in partnership businesses where each partner is authorized to act on behalf of the partnership and bind it in contracts.

Authorized Capital Stock

As stated in its charter, the number of shares of capital stock (common and preferred) that a corporation can sell.