Miscellaneous expense is 10% of revenue Calculate the net income.
FINANCIAL
JAMB 2002
Miscellaneous expense is 10% of revenue Calculate the net income.
- A. N583,000
- B. N563,000
- C. N483,000
- D. N581,000
Correct Answer: A. N583,000
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
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