The Following Information Is Available for Company ZZ If Sales Increase to $1,500,000,what Is Operating Income?
A) $405,000

question 10

Multiple Choice

The following information is available for Company ZZ:
$\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Variable Selling Expenses } & 22,000 \\\text { Fixed Selling Expenses } & 33,000 \\\text { Variable Administrative Expenses } & 30,000 \\\text { Fixed Administrative Expenses } & 10,000 \\\text { Variable Cost of Goods Sold } & 400,000 \\\text { Fixed Cost of Goods Sold } & 100,000\end{array}$
If sales increase to $1,500,000,what is operating income?

• A) $405,000
• B) $500,000
• C) $548,000
• D) $679,000

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Definitions:

Accounting Standards

These are established rules and guidelines fiscal reporting must follow to ensure consistency, reliability, and comparability of financial statements.

Consolidated Financial Statements

Financial statements that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries, presenting them as a single economic entity.

Shareholder's Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

NCI

Non-controlling interest, which represents the portion of a subsidiary not owned by the parent company, showing up in the consolidated financial statement.