Reference: 06-02
Comparative Income Statements for Boggs Sports Equipment Company

question 85

Multiple Choice

Reference: 06-02
Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: $$\begin{array} { | l | l | l | } \hline & \text { July } & \text { August } \\\hline \text { Sales in Units } & 11,000 & 10,000 \\\hline & & \\\hline \text { Sales Revenue } & \$ 165,000 & \$ 150,000 \\\hline \text { Less Cost of Goods Sold } & 72,600 & 66,000 \\\hline \text { Gross Margin } & 92,400 & 84,000 \\\hline \text { Less Operating Expenses: } & & \\\hline \text { Rent } & 12,000 & 12,000 \\\hline \text { Sales Commissions } & 13,200 & 12,000 \\\hline \text { Maintenance Expenses } & 13,500 & 13,000 \\\hline \text { Clerical Expense } & 16,000 & 15,000 \\\hline \text { Total Operating Expenses } & 54,700 & 52,000 \\\hline \text { Net income } & \$ 37,700 & \$ 32,000 \\\hline\end{array}$$ All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed) . The company is a merchandising company. Assume that the relevant range includes all of the activity levels mentioned in this problem.
-Which of the operating expenses of the company is variable

• A)Clerical Expense.
• B)Maintenance Expense.
• C)Rent.
• D)Sales Commissions.

Understand the concept and application of force field analysis in change management.

Learn about the significance of environmental and technological changes in the process of refreezing.

Grasp the concept of logical incrementalism and its application in organizations.

Appreciate the importance of involving employees in the change process and the potential consequences of neglecting this.

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Definitions:

Patient-visits

The total number of times patients are seen or treated by healthcare professionals, typically measured for a specific period.

Revenue

The overall revenue accrued from the sales of products or services pertinent to a company's main business activities.

Spending Variances

The gap between what was planned to be spent according to the budget and the real amount expended.

Activity Variances

The differences between the budgeted and actual costs of activities performed by a business.