The Portland Division's Operating Data for the Past Two Years

question 39

Multiple Choice

The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The net operating income for Year 1 was:

• A)$192, 000
• B)$128, 000
• C)$266, 667
• D)$208, 000

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Definitions:

Planning Budget

A budget prepared before a period begins, outlining the financial plans and the expected outcomes for that period.

Total Expenses

The aggregate amount of all costs and expenses, both fixed and variable, incurred by a business, organization, or individual.

Shipping Container

A large standard-sized metal box used for transporting goods by sea, land, or air.

Static Budget

A budget based on a fixed set of assumptions and output levels, not adjusting for changes in business activity.