Knox corp. plans to sell 1000 units in 2011 at an average, Ask an Expert

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Knox Corp. plans to sell 1,000 units in 2011 at an average sale price of $40 each. Cost of goods sold will be 40% of the sale price. Depreciation expense will be $2,500, interest expense $1,500, and other expenses will be $3,000. Wessel's tax rate is 35%. What will Knox Corp.'s net income be for 2011?

a. $ 9,500

b. $ 6,875

c. $14,200

d. $11,050

e. $28,430

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9438212

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