Use the Information Below to Answer the Following Questions

question 46

Multiple Choice

Use the information below to answer the following questions.
Travel Made Easy Ltd provides three services: International travel, Interstate travel, and Holiday Packages. The results for the year were as follows: The fixed costs have been shared equally between the three functions.
-Refer to the table above. Travel Made Easy supplies you with the following additional information. The fixed costs consist of $180,000 in rental and $90,000 in utilities and insurance. The floor space occupied by Holiday Packages staff is 15% of the total area and the remainder is shared equally by the other two services. All three services contribute equally to the utilities and insurance expense. Allocating fixed costs based on this information, the profit or loss of the Holiday Packages service would be:

• A) a loss of $30,000.
• B) a profit of $30,000.
• C) a loss of $3,000.
• D) a profit of $3,000.

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Definitions:

Emotions

Complex psychological states that involve an individual's subjective experience, physiological response, and behavioral or expressive reaction.

Reflexes

Involuntary and automatic responses of the body to certain external stimuli, indicative of the nervous system's health and functioning.

Temperament

The aspect of an individual’s personality concerning inherent emotional and behavioral patterns.