Sorter Company Has Provided the Following Data for the Third

question 41

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.



-Suppose the sales for the third quarter was the equivalent of 1,000 units and that the fixed manufacturing and non-manufacturing costs were valid between the relevant range of 800 and 1,200 units.If Sorter Company had sold 100 additional units,it would have reported what amount of additional operating income?

• A) $9,150.
• B) $23,725.
• C) $50,000.
• D) $100,650.

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Definitions:

Scarce Resources

Materials or inputs that are limited in availability and are essential for human survival or for the production of goods and services.

Functionalist

Relating to the theory in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals.

Collective Good

Benefits or interests that are shared by and advantageous to all members of a given community.

Diverse Structures

A term that refers to varied organizational or systemic frameworks within societies, encompassing different cultural, social, and economic setups.