Sutton Company Produces Flash Drives for Computers, Which It Sells

question 34

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 700 drives were sold.Fixed costs for April were $4 per unit for a total of $2,800 for the month.How much do Clark's operating income increase for each $1,000 increase in revenue per month?

• A)$700
• B)$500
• C)$14,000
• D)Not enough information to determine the answer.

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Definitions:

Confounding Variable

An external variable that can cause a false association between the variables being studied, potentially leading to incorrect conclusions.

Biological Perspective

The approach to psychology that seeks to understand the nature of the links between biological processes and structures such as the functioning of the brain, the endocrine system, and heredity, on the one hand, and behavior and mental processes, on the other.

Mood Disorders

A category of mental health disorders characterized by a serious change in mood that cause disruption to life activities, including major depressive disorder and bipolar disorder.

Stratified Sample

A sample drawn so that identified subgroups in the population are represented proportionately in the sample.