What is the calculation used to find Victor's actual net earnings from his net farm profit?

To determine Victor's actual net earnings from his net farm profit, the correct calculation involves taking a percentage of his gross income. The choice indicating 92.35% of $460 reflects this process accurately.

This percentage typically represents the portion of gross income that is retained after considering operating costs, taxes, and other deductions. In agricultural accounting, this percentage is calculated based on historical data and helps determine what portion of the gross income contributes to the actual net earnings of the farm.

Calculating 92.35% of $460 provides a specific monetary value, which ultimately gives a clear understanding of Victor's real income after expenses are accounted for. This method is commonly used in farm management to assess profitability.

The other options, while they may seem viable, do not reflect the correct formula for arriving at actual net earnings. For instance, using one-half of gross income or two-thirds of gross farm income does not incorporate the specific costs and expenses that must be deducted to accurately arrive at Victor's true earnings. Meanwhile, net farm profit multiplied by the gross profit ratio does not utilize the correct figures provided in the question to arrive at Victor's net earnings. Therefore, the calculation of 92.35% of $460 stands out as the correct method in