Solved

A Company Brings in $3

Question 67

Multiple Choice

A company brings in $3.25 million in revenue and has a revenue cost of $1 million.Which of the following statements is TRUE?

A) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.25 million.
B) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.75 million.
C) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $1.75 million.
D) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.25 million.
E) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.75.

Correct Answer: