Exhibit 2-4 Michael's Compute-All, a National Computer Retailer, Has Kept a Record

question 36

Multiple Choice

Exhibit 2-4
Michael's Compute-All, a national computer retailer, has kept a record of the number of laptop computers they have sold for a period of 80 days. Their sales records are shown below:
-Refer to Exhibit 2-4. The number of days in which the company sold less than 60 laptops is

• A)20
• B)30
• C)50
• D)60

---

Definitions:

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.

Operating Income

The profit realized from a business's ongoing operations, calculated before taxes and interest payments are deducted.

Variable Cost

Costs that fluctuate in direct proportion to changes in production volume or activity levels.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.