Calculate Net Income from the Following Information: ROA = 35

question 39

Multiple Choice

Calculate net income from the following information: ROA = 35%
Sales = $250,000
Current assets = $30,000
Fixed assets = $70,000

• A) $87,500
• B) $35,000
• C) $10,500
• D) $24,500
• E) $15,000

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Definitions:

Elasticity of Resource Demand

The measure of how much the quantity demanded of a resource changes in response to a change in its price.

MRP

Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a resource.

Wage Rate

The amount of money paid to an employee per unit of time worked, often hourly, daily, or annually.

Complementary Resources

Goods or services that are used together, where the use of one increases the value or demand for the other.