In making financial decisions, the relevant tax rate is the ________.

Select one:

a. marginal tax rate

b. previous year's tax rate

c. average (effective) tax rate

d. maximum allowable tax rate

Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods

Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense

= $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's operating income is equal to

Select one:

a. $1,100,000

b. $1,070,000

c. $770,000

d. $1,500,000.