The Following Income Statement Was Produced When Volume of Sales

question 111

Multiple Choice

The following income statement was produced when volume of sales was at 400 units. $$\begin{array} { | l | l r | } \hline \text { Sales Revenue } & \$ & 2,000 \\\hline\text { Variable Cost } & & 1,200 \\\hline \text { Contribution Margin } & \$ & 800 \\\hline\text { Fixed Cost } & & 300 \\\hline \text { Net Income } & \$ & 500 \\\hline\end{array}$$ If volume reaches 500 units, net income will be:

• A)$625
• B)$1,800
• C)$700
• D)None of the above

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Definitions:

Thermistor

A type of resistor whose resistance varies significantly with temperature, widely used as temperature sensors.

Solenoid

A coil of wire designed to create a magnetic field when an electric current is passed through it, often used to control valves or relays.

Relay

An electrically operated device that mechanically switches electric circuits.

Final Control Element

A device that directly manipulates a process variable to achieve a desired change, such as a valve or a motor.