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Over the Week, East Wind Chinese Buffet Sold 4,820 Buffet

Question 20

Multiple Choice

Over the week, East Wind Chinese Buffet sold 4,820 buffet meals at an average price of $15 each, which cost the company, on average, $5.50 each. Salaries accounted for $24,600, newspaper advertising and coupon expenses were $8,000, rent was $4,500 and administration expenses totaled $3,500. Interest equals $1,000. Their income tax rate is 31%. What was East Wind's operating income?


A) $45,790
B) $2,991
C) $40,600
D) $5,190
E) $43,190

Correct Answer:

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