Question

Business at Korey’s Comics has been good, and Korey expects the same business next month. However, due to an increase in business, Korey has made the decision to bring on an extra hand to help run the store in the afternoons. The new employee will make $435 per month. How does this change affect Korey’s monthly net income? a. Korey’s monthly net income will be $435. B. Korey’s monthly net income will increase by $435. C. Korey’s monthly net income will decrease by $435. D. Korey’s monthly net income will not be affected by the change.

Answer 1

Net income is the final income/profit. The given information is not enough to know the effect on Korey’s monthly net income.

What is net income?

Net income is the final income/profit that an organization or a business make after deducting all the cost, taxes, and allowances.

As it is given in the problem, Korey has made the decision to bring on an extra hand to help run the store in the afternoons. therefore, a new employee will be working in the store, which will increase the cost of running the store.

Also, the problem states that the new employee will make $435 per month. for the store. Now, since a revenue of $435 is increased in the store.

If we compare both the statements we will understand that the net profit may increase or decrease depending on the wage(salary) of the new employee. The increment in the net profit is the difference between $435(made by the new employee) - salary of the new employee(Cost of the new employee).

Hence, the given information is not enough to know the effect on Korey’s monthly net income.

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Answer 2

Answer:

C. korey's monthly net income will decrease by $435

Step-by-step explanation:

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