Question

Yellowday Energy's margin was 3% and turnover was 4.0 on sales of $50 million for the year. Net income for the year was:

A. $2,000,000
B. $1,500,000
C. $500,000
D. $6,000,000

Answer 1

The net income for Yellowday Energy for the year is $6,000,000.

Step-by-step explanation:

The question is asking for the net income of Yellowday Energy for the year. The margin of 3% and turnover of 4.0 can be used to calculate the net income. The formula to calculate net income is:

Net Income = Margin * Turnover * Sales

Substituting the given values:

Net Income = 3% * 4.0 * $50,000,000 = $6,000,000

Therefore, the net income for the year is $6,000,000. The correct answer is D. $6,000,000.