If a Company Has $152,000 of Revenues,declares and Pays $55,000

question 10

Multiple Choice

If a company has $152,000 of revenues,declares and pays $55,000 in dividends,and has net income of $89,000,how much were expenses for the year?

• A)$8,000
• B)$63,000
• C)$144,000
• D)Unable to determine the amount due to incomplete information.

Calculate and interpret the margin of safety.

Understand and apply the concept of operating leverage.

Evaluate the effects of sales mix changes on overall contribution margin ratio.

Develop an understanding of budgeted data to calculate break-even sales.

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Definitions:

State Law

Legislation that is enacted by the legislative bodies within each of the states in the United States, as opposed to federal law.

Federal

Pertaining to the national level of government, as opposed to state or local jurisdictions, involving policies, laws, and regulations applicable to the entire nation.

Chapter 7

A type of bankruptcy that involves the liquidation of a debtor's assets to pay off creditors.

Means Test

A method used to determine an individual's eligibility for certain types of government assistance or legal aid, based on their financial resources.