The Following Information Is Available About George Inc's Discontinued Operations

question 31

Multiple Choice

The following information is available about George Inc's discontinued operations: What single amount will be presented on George's statement of comprehensive income?

• A)$1,400,000
• B)$1,500,000
• C)$1,600,000
• D)$1,700,000

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, often indicating the degree of profitability.

Marginal Decision Rule

A principle stating that an action should be taken if and only if the marginal benefits exceed the marginal costs.

ATC

Average Total Cost, which represents the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

MR

Stands for Marginal Revenue, which is the additional income earned from selling one more unit of a good or service.