You Are to Prepare a Projected Income Statement for a Proposed

question 112

Multiple Choice

You are to prepare a projected income statement for a proposed business venture. Your desired income is $28,000 and you have the following published statistics: Costs of goods sold = 56.9 percent of net sales
Operating expenses = 37.1 percent of net sales
Gross profit margin = 43.1 percent of net sales
This information indicates the net sales on your pro forma "P & L" (income statement) would be:

• A) $466,667.
• B) $491,228.
• C) $500,000.
• D) None of the above

Learn about protective measures consumers can take to secure personal and financial information.

Understand the legal protections like patents and copyrights and their durations.

Recognize different forms of malware and their methods of attack.

Understand how to calculate the net present value (NPV) of different projects.

---

Definitions:

Automated Production Line

A sequence of automated machines and workstations arranged to efficiently manufacture a product.

Activity-Based Costing

A pricing strategy that pinpoints various tasks within a company and allocates the expenses of each task to every product and service based on their real usage.

Idle Capacity

The condition where equipment or workspaces are not being used to their full potential, often resulting in inefficiency and lost productivity.

Resource Consumption

The usage of resources such as materials, labor, and energy in the production of goods or services.