Faust Corporation Has Provided Its Contribution Format Income Statement for August

question 127

Multiple Choice

Faust Corporation has provided its contribution format income statement for August.
-If the company's sales increase by 10%, its net operating income should increase by about:

• A) 5%
• B) 72%
• C) 10%
• D) 189%

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Definitions:

Federal Income Tax

Federal income tax is a tax levied by the national government on individuals' and corporations' annual earnings, contributing to federal revenue.

Federal Budget Deficit

Occurs when a government spends more money than it receives from taxes and other revenues within a fiscal year.

Budget Deficits

Occurs when a government's expenditures surpass its revenues within a given fiscal period, necessitating borrowing or spending cuts.

Inheritance Tax

A tax imposed on individuals who inherit assets or property from a deceased person.