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

question 55

Multiple Choice

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
$\begin{array}{|l|r|r|}\hline \text { Sales } && \$ 800,000 \\\hline \begin{array}{l}\text { Less: Cost of Goods Sold - } \\\text { all variable }\end{array} && \underline{560,000} \\\hline \text { Gross Margin } & & 240,000 \\\hline \text { Less: Operating Expenses: } & & \\\hline \text { Selling } & \$ 98,000 & \\\hline \text { Administrative } & 98,000 & \underline{196,000} \\\hline \text { Operating Income } & & \underline{\$ 44,000} \\\hline\end{array}$ 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.


-Using the contribution approach,what is the operating income for the first quarter?

• A) $44,000.
• B) $128,000.
• C) $152,000.
• D) $240,000.

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Definitions:

Physical Appearance

The visible characteristics and attributes of a person, including body shape, facial features, hair, and skin tone.

Psychological Masculinity

A concept related to the extent to which an individual identifies with traits traditionally associated with being male, which can influence behavior and self-perception.

Terman and Miles

Lewis Terman and Miles Standish were psychologists known for their work in intelligence testing and the study of giftedness.

Femininity

A set of attributes, behaviors, and roles generally associated with girls and women, culturally defined in contrast to masculinity.