Jones Ice Cream Stand Is Operated by Mr

question 39

Multiple Choice

Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the future, Mr. Jones wants to determine its cost behavior patterns. He has the following information available about the ice cream stand's operating costs and the number of soft serve cones served. Using the high-low method, the monthly operating costs if Mr. Jones sells 1440 ice cream cones in a month are (Round any intermediary calculations to the nearest cent.)

• A)$1500
• B)$1200
• C)$2076
• D)$576

---

Definitions:

Operating Income

Income generated from a company's primary business activities, excluding deductions for interest and taxes.

Cash Sales

Revenue generated from transactions where payment is made in cash immediately upon purchase.

Supplies Expense

Supplies Expense represents the cost consumed in the use of supplies, such as office supplies, during a reporting period.

Rent Expense

the cost incurred by a company to utilize property or equipment for business operations, typically recognized over the lease term.