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 – N583,000

Explanation

Revenue = 820,000
miscellaneous = 10% of 820,000
10/100×820,000 = 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