An Income Statement for Sam's Bookstore for the First Quarter

question 184

Multiple Choice

An income statement for Sam's Bookstore for the first quarter of the year is presented below: On 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) $270,000
• B) $180,000
• C) $144,000
• D) $66,000

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Definitions:

Achieves Results

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Industry Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies to improve performance.

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A whole formed by combining several separate elements; often used in the context of data or materials.