An Income Statement for Sam's Bookstore for the First Quarter

question 26

Multiple Choice

An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $65. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The net operating income using the contribution approach for the first quarter is:

• A) $265,000
• B) $181,000
• C) $135,500
• D) $52,000

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Definitions:

Stroop Task

A task invented by J. R. Stroop in which a participant sees a list of words (color terms) printed in an ink color that differs from the word named (e.g., green printed in blue ink). The participant is asked to name the ink colors of the words in the list and demonstrates great difficulty in doing so relative to a condition in which non-color words form the stimuli.

Prototype

An original model or first form of something from which other forms are copied or developed.

Exemplar

An individual instance or example that is representative of a category or concept, often used in models of categorization in cognitive psychology.