Wessel Corp. plans to sell 1,000 units in 2005 at an average sale price of $45 each. Cost of goods sold will be 40% of the sale price. Depreciation expense will be $3,000, interest expense $2,500, and other expenses will be $4,000. Wessel's tax rate is 20%. What will Wessel Corp's net income be for 2005?

A) $ 3,500
B) $ 6,800
C) $14,000
D) $16,400
E) $28,400

Cost of Goods Sold

The immediate expenses related to the manufacturing of products which a business sells, covering materials and workforce.

Depreciation Expense

An accounting method to allocate the cost of a tangible or physical asset over its useful life.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue; often called the bottom line.