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

question 101

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 $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.
-The net operating income using the contribution approach for the first quarter is:

• A) $270,000
• B) $180,000
• C) $144,000
• D) $66,000

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Definitions:

Style Of Life

An individual's unique way of expressing their personality, including their goals, beliefs, and behaviors.

Shaped

The process by which behaviors are gradually guided toward a desired outcome through reinforcement, as used in behavior modification techniques.

Defined

Described or explained clearly with specific details and boundaries.

Compensation

An effort to overcome a real or imagined deficiency by developing a skill or trait to make up for the deficiency.