Pelicans Ice Is a Snow Cone Stand near the Local

question 1

Multiple Choice

Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans Ice wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served. Using the high-low method, the fixed costs for a month are

• A)$3000
• B)$13,000
• C)$2600
• D)$5400

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Definitions:

Insurance

A financial product that provides protection against losses or damages, in exchange for premium payments.

Departmental Income Statement

An income statement that shows the financial performance of different departments within a company.

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.

Direct Expense

Costs that can be directly traced to a specific product, service, or department, and is a key factor in the cost of goods sold.