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:

Design Engineers

Professionals who apply engineering principles and techniques to create plans, models, and specifications for products, systems, or structures.

Task Behavior

A leadership behavior focused on defining and organizing work, clarifying roles, and providing clear instructions and expectations.

Situational Leadership

A leadership style that proposes the effectiveness of a leader is determined by their ability to adapt their style to the demands of different situations.

Initiating Structure

A leadership behavior that involves organizing work, defining roles, and clearly stipulating tasks and procedures within a group or organization.