Thomason Corporation Has Provided the Following Contribution Format Income Statement

question 47

Multiple Choice

Thomason Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:

• A)$450
• B)$1,000
• C)$2,150
• D)$9,450

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Definitions:

Short-day Plant

Plants that require long nights (short days) to induce flowering.

Poinsettia

A plant with red and green foliage, often associated with Christmas.

Cryptochrome

A class of flavoproteins that are sensitive to blue light and are involved in the circadian rhythms and photoperiodism in plants and animals.

Clock Protein

A component of the circadian clocks of organisms, involved in maintaining the biological rhythm according to a 24-hour cycle.