Atwood Dairy Bar Sells Its Famous Soft-Serve Ice Cream Cones

question 176

Multiple Choice

Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served.

Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each.
-What would the operating income be at Atwood Dairy Bar if the owner prepared a traditional income statement for the month?

• A) $16,000
• B) $14,000
• C) $10,425
• D) $2,000

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Definitions:

Hours Per Day

A measurement unit indicating the amount of time allocated or spent on activities within a 24-hour period.

Homework

Assignments given to students by their educators to be done outside of classroom sessions.

Standard Deviation

An indicator of the range of variability or spread within a data set, demonstrating the extent to which the values differ from the average.

Snowfall

Precipitation falling from clouds in the form of ice crystals, accumulating on the ground.