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

question 100

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 cost formula for operating expenses with "X" equal to the number of books sold is

• A)Y = $98,000 + $7.00X.
• B)Y = $98,000 + $8.50X.
• C)Y = $84,000 + $7.00X.
• D)Y = $84,000 + $8.50X.

---

Definitions:

Filing Decision

The process of determining how and where to organize documents or data, typically for easy retrieval.

Charting

Process that lays out a chronological account of the patient reports, provider’s evaluation, prescribed treatment, and responses to treatment as well as the need for further follow-up.

Clinician

A healthcare professional who works directly with patients in diagnosing and treating illness and disease.

Paper Medical Records

Traditional forms of keeping patient's health information and history on paper, as opposed to digital formats.