Gasson Company Is a Merchandising Firm Assume That All Activity Mentioned in This Problem Is Within

question 62

Multiple Choice

Gasson Company is a merchandising firm. Next month, the company expects to sell 800 units. The following data describe the company's revenue and cost structure: $\begin{array} { | l | r | } \hline \text { Selling price per unit } & \$ 40 \\\hline \text { Sales commission } & 5 \% \\\hline \text { Purchase price (cost) per unit } & \$ 18 \\\hline \text { Advertising expense } & \$ 4,000 \text { per month } \\\hline \text { Administrative expense } & \$ 4,500 \text { per month plus } 15 \% \text { of sales } \\\hline\end{array}$ Assume that all activity mentioned in this problem is within the relevant range.


-What is the expected operating income next month?

• A) $2,700.
• B) $5,100.
• C) $7,500.
• D) $11,200.

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Definitions:

Major Beliefs

Fundamental convictions or principles held by an individual or group, often shaping their worldview and behavior.

Visible Attributes

Characteristics or features of an individual or object that are easily seen or noticed by others.

Manipulates Others

The act of controlling or influencing people deceitfully or unfairly for one's own advantage.

Individual Differences

Variations among individuals in their qualities, abilities, skills, or experiences.