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.

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Definitions:

Klinefelter Syndrome

A genetic condition in males characterized by the presence of an extra X chromosome, leading to symptoms like reduced muscle mass, facial hair, and infertility.

Fragile X Syndrome

A genetic disorder caused by a mutation on the X chromosome, leading to developmental problems including learning disabilities and cognitive impairment.

Down Syndrome

A hereditary condition resulting from a partial or complete extra third chromosome 21, leading to intellectual and developmental delays.

XYY Syndrome

A genetic condition in males characterized by an extra Y chromosome, which can be associated with tall stature, learning difficulties, and other symptoms.