Which of the following statements is not correct? a. A price ceiling set at $4 would be binding, but a price ceiling set at $6 would not be binding. b. A price floor set at $7 would be binding, but a price floor set at $4 would not be binding. c. A price ceiling set at $3.50 would result in a surplus. d. A price floor set at $6.50 would result in a surplus.

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: