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

question 100

Multiple Choice

An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:

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.
-What is the cost formula for operating expenses with X equal to the number of books sold?

• A) Y = $84,000 + $7.00X.
• B) Y = $84,000 + $8.50X.
• C) Y = $98,000 + $7.00X.
• D) Y = $98,000 + $8.50X.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

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