Harris Company Reported the Following Results from Operations for 2014

question 28

Multiple Choice

Harris Company reported the following results from operations for 2014:

Income before extraordinary items was

• A)$97,200
• B)$83,280
• C)$87,200
• D)$88,400

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Definitions:

Scarce Resources

Natural, human, and manufactured assets available in limited quantities that are used for the production of goods and services.

Highest Valued Uses

Refers to allocating resources or goods in a manner that maximizes utility or benefits for an individual or society.

Economic Profits

Profits exceeding the total opportunity costs of all resources used in production; also known as abnormal or supernormal profits.

Hired Managers

Individuals employed to direct and control the operations, strategies, and policies of a business or organization.