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

question 40

Multiple Choice

Use the information below to answer the following question(s) .
The following information for the past year for the Lambert Company has been provided:

During the year, the Lambert Company produced and sold 50,000 units of product at a sale price of $10.00 per unit. There was no beginning inventory of product at the beginning of the year.
-What is the operating income (loss) for the year at the Lambert Company?

• A) $94,000
• B) $301,000
• C) $500,000
• D) $293,000

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Definitions:

Ordinary Simple Interest

Interest calculated only on the principal amount, not on the interest that accrues over time.

360-Day Year

An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment without compounding, based on a 365-day year.

360-Day Year

A simplified accounting method where the year is considered to have 360 days for the calculation of interest and other financial metrics.