The Simonson Corp.provides the Following Data for 2014

question 32

Essay

The Simonson Corp.provides the following data for 2014:

The net income for 2014 is $2,300,000.The Simonson's tax rate is 30 percent.No conversions or options were exercised during 2014.
(1)Compute basic earnings per share.
(2)Compute diluted earnings per share.

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Definitions:

MRP

Marginal Revenue Product, which is the additional revenue generated by employing one more unit of a resource, such as labor or capital.

Marginal Revenue Product

The supplementary income produced by the application of one more unit of a factor or resource in production.

Wage Rate

The amount of compensation an employee receives per unit of time or per task completed, typically expressed in terms of dollars per hour.

Marginal Revenue Product

The supplementary income derived from the deployment of an extra unit of a production resource, like manpower or assets.