Net Income 2.7

Match the following

• a portion of an employee’s earnings that federal and provincial governments use to provide services

• Employment Insurance (EI)

• a fund that provides a source of income to people who lose their jobs while they look for a new job

• Income Tax

• a government fund that provides a monthly pension to workers when they retire

• Canada Pension Plan (CPP)

The annual income for someone making traditional handcrafted products is $120 000. The total expenses are $90 000. What is the net income?

Answer explanation

Net Income = Annual Income - Expenses $120,000 - $90,000 = $30,000

Tags

CCSS.7.EE.B.3

In the Maskwacis, a traditional beadwork artist sells their products for $3 000 per month. If their monthly expenses are $1 500, what is their net income for 6 months?

• $9 000

• $13 500

• $18 000

• $6 000

Answer explanation

Monthly Net Income = Monthly Income - Expenses $3,000 - $1,500 = $1,500 Net Income for 6 months = $1,500 * 6 = $9,000

Tags

CCSS.7.EE.B.3

A member of the Maskwacis earns $45 000 annually by selling traditional medicines. If the cost of the herbs and materials is $20 000, and other annual expenses amount to $10 000, what is their net income?

• $15 000

• $35 000

• $25 000

• $5 000

Answer explanation

Net Income = Annual Income - (Cost of Herbs and Materials + Other Expenses) $45,000 - ($20,000 + $10,000) = $45,000 - $30,000 = $15,000

Tags

CCSS.4.OA.A.3

The Chief organizes a cultural event that generates a revenue of $50,000. If the expenses for the event are $35,000, what percentage of the revenue is the net income?

• 30%

• 40%

• 50%

• 60%

Answer explanation

Net Income = Revenue - Expenses $50,000 - $35,000 = $15,000 Percentage of Net Income = (Net Income / Revenue)100 ($15,000 / $50,000) *100 = 30%

Tags

CCSS.6.RP.A.3C

A local clothing store has a net income of $12 000 after deducting its monthly expenses from its monthly revenue. If the store's monthly expenses are $8 000, what is the store's monthly revenue?

• $20 000

• $24 000

• $16 000

• $4 000

Answer explanation

Net Income = Monthly Revenue - Monthly Expenses $12,000 = Monthly Revenue - $8,000 Monthly Revenue = $12,000 + $8,000 = $20,000

Tags

CCSS.7.EE.B.3