The income statement of Trixle Motors Inc. is given to you. What is the net profit for the given period? A. $1,600,000
B.
$ 43,500
C.
$1,665,600
D.
$1,556,500

D.$1,556,500

Explanation:

Net profit is calculated by subtracting total expenses from total revenue.

In the case, total revenue is equal to sales revenue + interest revenue

=1,580,000 + 20,000

=1,600,000

Total expenses will be salaries + Rent + advertisement + repair

=26,000 + 6,000 + 7,000 +4500

=43,500

net profit = 1,600,000 - 43,500

net profit =1,556,500

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: