Question

Net income is equal to the total revenue from selling an item minus the cost of producing the item. Determine the net income if the revenue from a business is $400,000 and the cost is $156,800. Use I=R-C I = net income, R = revenue, C = cost a. $243,000 is the net income b. $556,800 is the net income c. $243,200 is the net income d. $556,000 is the net income

Answer 1

Net income 400,000−156,800=243,200 Answer is c........

Answer 2

Revenue from the business = R = $ 400,000
Cost of production = C = $ 156,800
Net Income = I = ?

Net Income = Revenue - Cost
I = R - C

Using the values, we get:

I = 400000 - 156800 = $ 243,200

Thus, the net income will be $243,200

So, option C is the correct answer