Reference: 06-13
a Comparative Income Statement for Jimbob Co -What Is the Company's Contribution Margin for the Quarter?
A)$1,653,750

question 68

Multiple Choice

Reference: 06-13
A comparative income statement for Jimbob Co., a merchandising company, for the three months ended June is presented below.
Jimbob Co.
Comparative Income Statement
For the Second Quarter $$\begin{array} { | l | c | c | c | } \hline & \text { April } & \text { May } & \text { June } \\\hline \text { Sales in units } & 4,500 & 5,250 & 6,000 \\\hline \text { Sales revenue } & \$ 630,000 & \$ 735,000 & \$ 840,000 \\\hline \text { Less cost of goods sold } & 252,000 & 294,000 & 336,000 \\\hline \text { Gross Margin } & 378,000 & 441,000 & 504,000 \\\hline \text { Less operating expenses: } & & & \\\hline \text { Shipping expense } & 56,000 & 63,500 & 71,000 \\\hline \text { Advertising expense } & 70,000 & 70,000 & 70,000 \\\hline \text { Salaries and commissions } & 143,000 & 161,750 & 180,500 \\\hline \text { Insurance expense } & 9,000 & 9,000 & 9,000 \\\hline \text { Depreciation expense } & 42,000 & 42,000 & 42,000 \\\hline \text { Total operating expenses } & \frac { 320,000 } { } & 346,250 & 372,500 \\\hline \text { Net income } & \frac { \$ 8,000 } { } & \underline { \$ 84,750 } & \$ 131,500 \\\hline\end{array}$$
-What is the company's contribution margin for the quarter?

• A)$1,653,750.
• B)$1,028,965.
• C)$771,750.
• D)$1,910,965.

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Definitions:

Organisational Position

A role or rank within a structure that defines job duties, responsibilities, and the level of authority.

Special Assignments

Tasks or projects assigned to an individual or group that fall outside their regular duties, often requiring special skills or knowledge.

Reward Power

The ability to influence others by offering them something desirable in return for their compliance or performance.

Zero-Sum Quantity

A situation in which one party's gain is exactly balanced by another party's loss, typically in a competitive scenario.