Answer the Following Questions Using the Information Below:
Genend's Good

question 108

Multiple Choice

Answer the following questions using the information below:
Genend's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
$\begin{array}{lr}\text { Sales ( } 6,000 \text { microwave ovens) } & \$ 1,740,000 \\\text { Cost of goods sold } & 960,000 \\\text { Store manager's salary per year } & 100,000 \\\text { Operating costs per year } & 250,000 \\\text { Advertising and promotion per year } & 30,000 \\\text { Commissions (3\% of sales) } & 52,200\end{array}$
-What were the total fixed costs for 2015?

• A) $1,392,200
• B) $380,000
• C) $350,000
• D) $1,012,200

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Definitions:

Control Chart

A graphical tool used in process control to display how a process changes over time, highlighting whether the process stays within predetermined control limits.

Sample Means

The arithmetic average of a set of values or observations, derived from a subset of a larger population.

Control Limits

The boundaries of acceptable variation in a process, used in statistical process control charts.

Chance Variation

The unpredictable fluctuations or differences that are observed in different samples from the same population, even under the same conditions.