Sorter Company Has Provided the Following Data for the Third

question 40

Multiple Choice

Sorter Company has provided the following data for the third quarter of the most recent year:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 500,000 \\\hline \text { Fixed Manufacturing Overhead } & 55,000 \\\hline \text { Direct Labour } & 72,500 \\\hline \text { Fixed Selling Expenses } & 46,250 \\\hline \text { Variable Manufacturing Overhead } & 41,000 \\\hline \text { Variable Administrative Expenses } & 48,000 \\\hline \text { Direct Materials } & 51,500 \\\hline \text { Fixed Administrative Expenses } & 44,500 \\\hline \text { Variable Selling Expenses } & 49,750\\\hline \end{array}$ Assume that direct labour is a variable cost and that there was no beginning or ending inventories.



-At the level of sales for the third quarter,how much in additional fixed selling expenses could Sorter Company have afforded to spend and still would have reported $41,500 operating income?

• A) $50,000.
• B) $87,750.
• C) $91,500.
• D) $96,250.

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Definitions:

Social-Cognitive Perspective

Views behavior as influenced by the interaction between people’s traits (including their thinking) and their social context.

Interactive Influences

The complex ways in which factors or variables interact with and influence each other.

Personality Traits

Characteristics and behaviors that are consistent over time and across situations, defining an individual.

Impact

The strong effect or influence one thing has on another, which can be observed in various contexts such as social, environmental, or economic areas.