Palmer Corporation Has Fixed Expenses of $240,000, and a Unit

question 72

Multiple Choice

Palmer Corporation has fixed expenses of $240,000, and a unit sales price of $75. Their variable cost per unit is $40. If they sell 8,000 posters, their operating income is a

• A) gain of $40,000.
• B) loss of $520,000.
• C) gain of $680,000.
• D) gain of $80,000.

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Definitions:

Mail-Order Sales

A sales process where products are ordered through mail correspondence or online and shipped directly to the consumer's address.

Magazines and Books

Periodic publications containing articles, stories, photographs, and advertisements, and written works bound and published covering various subjects or narratives.

Postage

The fee charged for the service of mailing letters and packages.

Publisher

An individual or company that prepares and issues books, journals, music, or other works for sale.