Assume Sales of $10,000, Variable Costs of $7,000, and Fixed

question 48

Multiple Choice

Assume sales of $10,000, variable costs of $7,000, and fixed costs of $2,000.Calculate contribution margin and operating income.

• A)Contribution margin = $3,000; Operating income = $1,000
• B)Contribution margin = $5,000; Operating income =$1,000
• C)Contribution margin = $8,000; Operating income = $1,000
• D)Contribution margin = $6,000; Operating income = $1,000

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Definitions:

Tour of France

An annual men's multiple stage bicycle race primarily held in France, considered one of the most prestigious and challenging events in the sport of cycling.

Journeymen

Skilled workers who have completed their apprenticeships but are not yet masters, typically traveling to gain experience.

Nobles

Members of the aristocracy or nobility, a class of people in various societies who traditionally have special social or political status, often hereditary.