The University Store, Inc

question 6

Multiple Choice

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:
On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.
-The contribution margin for the University Store for the first quarter is:

• A) $660,000
• B) $700,000
• C) $180,000
• D) $140,000

---

Definitions:

Smell

The sensory perception of odors or scents, detected by the olfactory system in the nose.

Mechanoreceptors

Mechanoreceptors are sensory receptors that respond to mechanical pressure or distortion, involved in sensations such as touch, pressure, and sound.

Excited By

Stimulated or activated by an external source, leading to an increased level of energy or activity.

Pressure

The force exerted per unit area; in fluids, it is often caused by gravity acting upon the fluid's mass.