Atwood Dairy Bar Sells Its Famous Soft-Serve Ice Cream Cones

question 44

Multiple Choice

Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served.

Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each.
-What would the operating income be at Atwood Dairy Bar if the owner prepared a contribution margin income statement for that month?

• A) $14,000
• B) $2,000
• C) $16,000
• D) $10,425

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Definitions:

Interpersonal Skills

The skills used by a person to interact effectively with others, crucial for communication, conflict resolution, and teamwork.

Error of Central Tendency

A bias in evaluation or assessment where all individuals are rated near the average or middle of the scale, ignoring variation in performance.

Performance-rating Error

Mistakes or biases that occur when evaluating an employee's performance, potentially leading to inaccurate assessments.

Trait Evaluation Approaches

Methods used in psychology and human resource management to assess individuals' characteristics and predict their behavior or performance.