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

question 50

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.
-If 20,000 books are sold during the second quarter and this activity is within the relevant range,the company's expected contribution margin would be:

• A) $300,000
• B) $160,000
• C) $860,000
• D) $58,000

---

Definitions:

Economic Growth

A rise in the output of goods and services in the economy from one time period to another.

Nutrition

Nutrition is the intake of food, considered in relation to the body's dietary needs.

Educational Attainment

The highest level of education an individual has completed.

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the number of individuals increases in a specific time period.