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:

Organ of Corti

A structure located in the cochlea of the inner ear, containing hair cells that act as sensory receptors for sound.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into nerve signals sent to the brain.

Umami

One of the five basic tastes, often described as savory or meaty, and is attributed to the presence of glutamates in food.

Protein-Rich Foods

Foods that are high in protein content, essential for growth, repair, and maintenance of body tissues.