Assume Sales of $10,000, Variable Costs of $7,000, and Fixed

question 48

Multiple Choice

Assume sales of $10,000, variable costs of $7,000, and fixed costs of $2,000.Calculate contribution margin and operating income.

• A)Contribution margin = $3,000; Operating income = $1,000
• B)Contribution margin = $5,000; Operating income =$1,000
• C)Contribution margin = $8,000; Operating income = $1,000
• D)Contribution margin = $6,000; Operating income = $1,000

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Definitions:

Morbidity

Refers to the incidence or prevalence of a disease or medical condition in a population.

Mortality

The state of being subject to death; often used in statistics to describe the number of deaths within a population over a given period.

Measles

A highly infectious viral illness known for causing a rash, fever, and cough, and is preventable through vaccination.