The Whippleton Department Had Gross Profit on Sales of $120,000

question 66

Multiple Choice

The Whippleton Department had gross profit on sales of $120,000, contribution margin of $60,000, total direct expenses of $18,000, and total indirect expenses of $52,000. The Whippleton Department has

• A) a net income from operations of $42,000.
• B) a net income from operations of $8,000.
• C) a net income from operations of $50,000.
• D) a net loss from operations of $10,000.

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Definitions:

Plaster

A building material composed of water, lime, and sand, used for coating walls and ceilings or for creating architectural decorations.

Labor

The physical and mental effort used in the production of goods and services by workers.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity of that good supplied by producers, achieving a state of market balance.

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.