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

question 115

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 behavior 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. $$\begin{array} { | l | c | c | } \hline { \text { Month } } & \text { Number of soft-serve cones } & \text { Total aperatine costs } \\\hline \text { April } & 8,200 & \$ 5,200 \\\hline \text { May } & 8,600 & \$ 5,500 \\\hline \text { June } & 7,500 & \$ 4,500 \\\hline \text { July } & 9,700 & \$ 6,000 \\\hline \text { August } & 8,900 & \$ 5,900 \\\hline \text { September } & 5,700 & \$ 5,000 \\\hline\end{array}$$ 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 if she prepared a traditional income statement for the month?

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

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