Use the Information Below to Answer the Following Question(s)

question 264

Multiple Choice

Use the information below to answer the following question(s) .

During the year, Cornell produced and sold 60,000 units of product at a sale price of $8.00 per unit. There was no beginning inventory of product at the start of the year.
-What is the operating income (loss) for the year at Cornell Corporation?

• A) $92,000
• B) $480,000
• C) $282,000
• D) $290,000

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Definitions:

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a potential say in company decisions.

Cash

Liquid currency or assets that can be immediately used to make transactions or settle debts.

Day-to-day Expenses

Regular and routine expenses that are necessary for the daily operations of an individual or organization, such as groceries or office supplies.