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.

---

Definitions:

Lordosis

A curvature of the spine that results in an exaggerated inward curve of the lower back.

Kyphosis

A spinal disorder where there is an excessive outward curve of the spine, leading to a hunchback appearance.

Scoliosis

A medical condition characterized by a sideways curvature of the spine that occurs most often during the growth spurt just before puberty.

Spina Bifida

A birth defect where there is incomplete closing of the spine and membranes around the spinal cord during early pregnancy.