Information Inc

question 32

Multiple Choice

Information Inc., sells accounting software.Each unit's cost may be separated as follows: selling price of $100 and variable costs of $30.Fixed costs are $10,000.What is Information Inc.'s operating income assuming 1,000 units are sold?

• A)$100,000
• B)$90,000
• C)$60,000
• D)$40,000
• E)$20,000

---

Definitions:

Retained Earnings

These are the profits that a company has decided to keep or reinvest in the business rather than distribute to shareholders as dividends.

Analyzing Noncash Accounts

Examining accounts that involve transactions not involving cash, such as depreciation, amortization, and accrued expenses.

Outflow of Cash

Financial transactions that result in the expenditure of cash from a business, such as payments for expenses, investing activities, and financing activities.

Discarding an Asset

involves removing an asset from the company's balance sheet due to it being obsolete, no longer usable, or not worth repairing.