Argyle Company Is Preparing the Operating Budget for the First

question 74

Multiple Choice

Argyle Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Variable and fixed expenses are as follows:
Variable: Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed: Salary expense: $8 000 per month Rent expense: $5 000 per month
Depreciation expense: $1 200 per month Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1 000 per month
How much is the total operating expense for January?

• A)$47 500
• B)$43 000
• C)$41 700
• D)$38 500

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Definitions:

Positron Emission Tomography

A medical imaging technique that uses radioactive tracers to visualize and measure changes in metabolic processes in the body.

Isotopes

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another target neuron, muscle cell, or gland.

Internal Consistency

A measure of how well the items on a test or the components of a multi-dimensional instrument assess the same construct.