The Quarterly Income Statement for Largent Is as Follows: Sales

question 122

Multiple Choice

The quarterly income statement for Largent is as follows: Sales $1,600
Less variable expenses:
Direct materials $280
Direct labour 300
Manufacturing overhead 60
Administrative expenses 30
Selling expenses 70 740
Contribution margin 860
Less fixed expenses:
Manufacturing overhead $180
Administrative expenses 440
Selling expenses 100 720
Income before taxes $ 140
What total amount represents the period costs?

• A)$60
• B)$640
• C)$600
• D)$720

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Definitions:

Revenue

Income generated from normal business operations, usually from the sale of goods and services to customers.

Lessor

An entity or individual that leases or rents out an asset to another party, known as the lessee.

Lessee

A lessee is an individual or entity that leases an asset from another party, known as the lessor.

Lease Contract

is an agreement wherein one party allows another to use an asset, such as property or equipment, for a specified period in exchange for payment.