1. A company may have a net income without being profitable.

A. True

B. False

2. The best method of comparing a ratio is with a predetermined standard or base figure.

A. True

B. False

3. If a restaurant operator wanted a 30% food cost for a menu item, he or she would multiply the item cost by three to obtain the selling price.

A. True

B. False

4. Forecast annual motel room sales revenue is 642,400 dollars. The motel has 40 rooms and an 80% occupancy rate. What is the average room rate?

A. $55.76

B. $55.00

C, $44.00

D. $50.00