Reference: 06-12
an Income Statement for Crandall's Bookstore for the First

question 87

Multiple Choice

Reference: 06-12
An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:
Crandall's Bookstore
Income Statement
For the First Quarter of the Current Year $$\begin{array} { | l | l | l | } \hline \text { Sales } & & \$ 800,000 \\\hline \text { Less cost of goods sold } & & 560,000 \\\hline \text { Gross margin } & & 240,000 \\\hline \text { Less operating expenses: } & & \\\hline \text { Selling } & \$ 98,000 & \\\hline \text { Administrative } & 98,000 & \underline { 196,000 } \\\hline \text { Net income } & & \$ 44,000 \\\hline\end{array}$$ On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales, with the remainder being fixed.
-The contribution margin for Crandall's Bookstore for the first quarter is

• A)$688,000.
• B)$240,000.
• C)$152,000.
• D)$128,000.

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Definitions:

Interoceptive Stimulus

A type of stimulus that originates from within the body, such as hunger, thirst, or the sensation of a racing heartbeat.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the specific stimulus conditioned.

Generalization Gradient

Refers to the decrease in response strength as stimuli become less similar to the conditioned stimulus in classical or operant conditioning.