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

question 196

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 contribution margin for Sam's Bookstore for the first quarter is:

• A) $180,000
• B) $774,000
• C) $144,000
• D) $756,000

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Definitions:

Self-Regulation

The ability of an individual or organization to regulate its actions and behaviors without external control, often to maintain ethical standards.

Conflicts of Interest

Situations in which a person's personal interest might interfere with their professional obligations or duties.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, made in response to financial scandals.