The Following Information Relates to Marshall Manufacturing's 2013 Accounting Period

question 79

Multiple Choice

The following information relates to Marshall Manufacturing's 2013 accounting period: $\begin{array}{lr}\text { Raw materials used } & \$ 34,000 \\ \text { Direct labor wages } & 66,000 \\\text { Sales salaries and commissions } & 50,000 \\\text { Depreciation on production equipment } & 6,000 \\ \text { Rent on manufacturing facilities } & 4,000 \\ \text { Administrative supplies and utilities } & 10,000 \\\text { Sales revenue } & 210,000 \\ \text { Units produced } & 10,000 \\ \text { Units sold } & 10,000\end{array}$ Based on this information, what is the company's net income for 2013?

• A) $40,000
• B) $70,000
• C) $30,000
• D) $42,000

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Definitions:

Breach

The violation or infringement of a law, duty, agreement, or trust.

Authority

denotes the power or right to give orders, make decisions, and enforce obedience.

Independent Contractor

An individual or business that provides goods or services to another entity under terms specified in a contract or within a verbal agreement, not classified as an employee.

Employee

An individual who is hired by an employer to perform a specific job or duty in exchange for compensation.