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The Most Recent Income Statement for the Parma Branch of the Dinero

question 101

Multiple Choice

The most recent income statement for the Parma Branch of the Dinero Company is presented below.  Sales $57,000 Variable costs 31,500 Contribution margin $25,500 Fixed costs:  Avoidable 13,500 Unavoidable 18,000 Operating income $6,000) \begin{array} { l r } \text { Sales } & \$ 57,000 \\\text { Variable costs } & \underline { 31,500 } \\\text { Contribution margin } & \$ 25,500 \\\text { Fixed costs: } & \\\text { Avoidable } & 13,500 \\\quad \text { Unavoidable } & \underline { 18,000 } \\\text { Operating income } & \underline { \$ 6,000 } ) \end{array} If the Parma Branch is eliminated and the space is rented for $24,000, operating income will be _____.


Definitions:

Transvestism

The wearing of clothes of the other sex for any one of many reasons, including relaxation, fun, and sexual gratification. Also referred to as cross-dressing.

Fetishism

Sexual attraction to objects that become sexual symbols.

Perversion

A deviation from what is considered normal or acceptable in sexual behavior, often carrying a negative judgment.

Voyeurism

Observing an unsuspecting person who is naked, disrobing, or having sex.

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