Argyle Company Is Preparing the Operating Budget for the First

question 21

Essay

Argyle Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:
How much is the total operating expense for February?
A)$38,500
B)$47,500
C)$41,700
D)$43,000

• A)$38,500
• B)$47,500
• C)$41,700
• D)$43,000

---

Definitions:

Underwater

Underwater refers to being submerged in water, or to the condition of owing more on a loan than the value of the property securing it.

Primacy Effect

A cognitive bias that results in a person remembering the first pieces of information encountered better than information presented later on.

Interviewed

The process of asking questions and obtaining answers from someone, especially for research or journalistic purposes.

Retrograde Amnesia

An inability to retrieve information from one’s past.