Last Year, Terrific Copying Had Total Revenue of $475 000

question 2

Multiple Choice

Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $180 000. If the current selling price, variable costs, and fixed costs are the same as last year, what net income can be expected from revenue of $500 000 in the current year

• A) $381 388
• B) $394 737
• C) $1 418 216
• D) $1 184 210
• E) $346 260

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Definitions:

Material Misrepresentation

False or misleading statements that significantly affect another party's decision in a transaction.

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a standard to assess behavior.

Duress By Physical Force

The use of physical force or threats to compel someone to act against their will or to consent to an agreement.

Duress By Improper Threat

A situation where an individual is forced or coerced into a contract or legal agreement under threats that are unlawful or unethical.