An income statement for Sam's Bookstore for the first quarter of the year is presented below:Sam's BookstoreIncome StatementFor Quarter Ended March 31Sales $900,000Cost of goods sold 630,000Gross margin 270,000Selling and administrative expenses Selling$100,000 Administration 104,000 204,000Net operating income $66,000On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The net operating income using the contribution approach for the first quarter is:
A. $180,000
B. $66,000
C. $270,000
D. $144,000
Answer: B
You might also like to view...
Unilever has over 10 personal care brands, each with a unique focus and product positioning strategy. Buyers would not know that Unilever is the manufacturer of a specific brand unless they looked closely at the small print on the package. This is an example of using a ________ branding strategy.
A) company name only B) brand name only C) company and brand name D) brand and subbrand name E) company, brand, and product name
_______________ can be defined as the systematic equal allocation of environmental benefits and burdens.
a. Environmental auditing b. Ethical justice c. Environmental justice d. Environmental accounting
Which of the following is not a role of the Web from the vantage point of the retailer?
a. to furnish customer service in the form of E-mail and "hot links" b. to replace mail, phone, and fax communications c. to reach geographically dispersed consumers, including foreign consumers d. to provide information to consumers
An act of performance is necessary to create a ________ contract.
A. bilateral B. unilateral C. express D. implied-in-fact