Miscellaneous expense is 10% of revenue Calculate the net income.
-
A.
N583,000 -
B.
N563,000 -
C.
N483,000 -
D.
N581,000
Correct Answer: Option A
Explanation
Revenue = 820,000
miscellaneous = 10% of 820,000
(frac{10}{100}times {820,000}) = 82,000
miscellaneous expense= 82,000
Expenses = office rent + nepa (light) + salary of staff + miscellaneous
20,000 + 15,000 + 120,000 + 82,000 = 237,000
net income = revenue – expenses
820,000 – 237,000 = 583000