The Dollar Amount of Desired Profit from the Production and Sale

question 38

Multiple Choice

The dollar amount of desired profit from the production and sale of the company's product is

• A) $175,000
• B) $67,200
• C) $73,500
• D) $96,000

---

Definitions:

Dividends

Disbursements from a corporation to its shareholders, typically deriving from the company's profits.

Amortization

The gradual reduction of a debt or the cost of an intangible asset over a specific period of time through regular payments.

Net Income

The amount of earnings left over after all expenses and taxes have been subtracted from total revenue; a key indicator of a company's profitability.

Equity Method

An accounting technique used by a parent company to record its investments in subsidiaries or affiliates based on the equity stake's pro-rata share of net assets rather than the historical cost of the investment.