Willis Company made a $200,000 investment in new machinery.Assuming the company's margin is 4%,what income will be earned if the investment generates $600,000 in additional sales?
A) $80,000.
B) $24,000.
C) $400,000.
D) None of these.

Question

Quizplus · Accepted Answer

The income earned from the investment can be calculated by applying the margin percentage to the additional sales generated by the investment. With a 4% margin on $600,000 in additional sales, the income earned would be $600,000 * 4% = $24,000.

Willis Company Made a $200,000 Investment in New Machinery