Answer the Following Questions Using the Information Below

question 181

Multiple Choice

Answer the following questions using the information below:
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.
-If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000, the tax rate is 30%, and the company sells 5,000 units, net income is:

• A)$12,000
• B)$14,000
• C)$28,000
• D)$40,000

Understand different financing strategies for companies including last resort options.

Comprehend the critical elements of valuation in private company fundraising.

Identify and define economic agreements and their participants within business contexts.

Understand different sources and types of power in leadership.

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Definitions:

Defined-Benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, determined by a formula considering factors like salary and duration of employment.

Cash Balance Plans

A type of defined benefit pension plan that holds an employee's retirement savings as a hypothetical account balance, which grows annually through employer contributions and interest credit rates.

Experienced Employees

Workers who have accumulated significant skill and knowledge in their field through prolonged exposure to various professional situations.

Short-Term Disability Insurance

Insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less.