Final answer:
The net income for Featherstone Inc. is $296,000. In a sample self-check question, if a company's revenue is $1 million and costs are $950,000, the accounting profit is $50,000.
Step-by-step explanation:
The net income reported by Featherstone Inc. is $296,000. This figure is mentioned directly in the question as the company's net income. When assessing the options given, it is the first option that accurately represents the reported income.
Self-Check Questions Example:
For a firm that had sales revenue of $1 million last year and spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be calculated as follows:
- Total Revenue: $1,000,000
- Total Costs: $600,000 (Labor) + $150,000 (Capital) + $200,000 (Materials) = $950,000
- Accounting Profit = Total Revenue - Total Costs = $1,000,000 - $950,000 = $50,000