The Book Rack Has Two Locations, Downtown and on Campus

question 83

Multiple Choice

The Book Rack has two locations, downtown and on campus.During March, the company reported net income of $164,000 and sales of $1.2 million.The contribution margin in the downtown store was $320,000 (32% of sales) .The contribution margin in the campus store is $110,000.Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location.How much are total variable costs?

• A)$953,000
• B)$770,000
• C)$680,000
• D)$430,000

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Definitions:

Digestive Enzymes

Biological molecules that catalyze the breakdown of complex food particles into simpler substances for absorption and assimilation by the body.

Substrate

A surface or material upon or within an organism lives, grows, or obtains its nourishment, or a reactant in a chemical reaction upon which an enzyme acts.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one’s job or role.

Pancreatic Juice

A digestive fluid produced by the pancreas that contains enzymes for breaking down proteins, fats, and carbohydrates.