Crystal Inc What Is the Operating Income for 2015?
A) $183,700
B)

question 54

Multiple Choice

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 557,000 \\\hline \text { Purchases (excluding freight in) } & 300,000 \\\hline \text { Selling and Administrative Expenses } & 69,000 \\\hline \text { Freight In } & 15,000 \\\hline \text { Beginning Merchandise Inventory } & 45,000 \\\hline \text { Ending Merchandise Inventory } & 55,700 \\\hline\end{array}$$ What is the operating income for 2015?

• A) $183,700
• B) $304,300
• C) $252,700
• D) $257,000

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Definitions:

Comparison Shop

The practice of comparing prices and features of similar products or services before making a purchase decision.

Marketing Channel

A path or route through which goods or services flow from the producer to the consumer.

Channel Functions

Activities that enable the transfer of goods from the producer to the consumer, including physical distribution, financing, and information sharing.

Perishability

A characteristic of services indicating that they cannot be stored for future use and their value vanishes if not consumed within a particular period.