The Following Information Has Been Provided by the Evans Retail

question 101

Multiple Choice

The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:
$\begin{array} { | l | r | } \hline \text { Sales } & \$ 350,000 \\\hline \text { Variable Selling Expenses } & \$ 35,000 \\\hline \text { Fixed Selling Expenses } & \$ 25,000 \\\hline \text { Cost of Goods Sold } & \$ 160,000 \\\hline \text { Fixed Administrative Expenses } & \$ 55,000 \\\hline \text { Variable Administrative Expenses } & \$ 15,000 \\\hline\end{array}$


-What is the contribution margin of Evans Retail Stores,Inc.,for the first quarter?

• A) $140,000.
• B) $190,000.
• C) $210,000.
• D) $300,000.

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Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Net Exports

The difference between a country's total value of exports and its total value of imports; a key component of a nation's GDP.

U.S. Bonds

Debt securities issued by the United States government as a way of borrowing money from investors.

Aggregate Demand

The aggregate demand within the economy, reflecting the total goods and services sought after at a specific price level during a particular time frame.