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

question 199

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. $$\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of soft-serve canes } & \text { Total operating costs } \\\hline \text { April } & 8,200 & \$ 5,200 \\\hline \text { May } & 8,600 & \$ 5,500 \\\hline \text { June } & 7,500 & \$ 4,500 \\\hline \text { July } & 9,700 & \$ 6,000 \\\hline \text { August } & 8,900 & \$ 5,900 \\\hline \text { September } & 5,700 & \$ 5,000 \\\hline\end{array}$$ 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 contribution margin income statement for that month?

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

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Definitions:

Emotional Lability

A condition characterized by rapid, often unpredictable changes in emotional states, such as sudden episodes of crying or laughing.

Correspondent Inference

Causal attribution of behaviour to underlying dispositions.

Ingroup Norm

Shared expectations and rules that guide the behavior of members within their social group.

Extraverted

Characterized by outgoing, sociable, and energetic behavior.