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An Income Statement for Crandall's Bookstore for the First Quarter

question 55

Multiple Choice

An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:
CRANDALL's BOOKSTORE
Income Statement for the First Quarter of the Current Year
$\begin{array}{|l|r|r|}\hline \text { Sales } && \$ 800,000 \\\hline \begin{array}{l}\text { Less: Cost of Goods Sold - } \\\text { all variable }\end{array} && \underline{560,000} \\\hline \text { Gross Margin } & & 240,000 \\\hline \text { Less: Operating Expenses: } & & \\\hline \text { Selling } & \$ 98,000 & \\\hline \text { Administrative } & 98,000 & \underline{196,000} \\\hline \text { Operating Income } & & \underline{\$ 44,000} \\\hline\end{array}$ On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales, with the remainder being fixed.

-Using the contribution approach,what is the operating income for the first quarter?

Recognize when an act can constitute both a tort and a crime.

Identify situations constituting false imprisonment.

Identify actions that could be considered a battery in tort law.

Differentiate between conversion and trespass.

Definitions:

Monthly Compounded

Refers to the process of adding interest to the principal sum of a loan or deposit, recalculated on a monthly basis. This is a repeat of Compounded Monthly with a new definition focusing on recalculating interest increase.

Compounded Monthly

Compounded monthly refers to the process where the interest earned on an investment is added to the principal sum each month, causing the principal amount to grow at an increasing rate.

Effective Rate

The actual interest rate an individual pays or earns on a loan or investment, taking into account the effects of compounding.

Compounded Semiannually

Refers to the process of calculating and adding interest to the principal balance of an investment or loan twice a year.