The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The net operating income computed using the contribution approach for the first quarter is:
A) $30,000
B) $180,000
C) $140,000
D) $0

Question

The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:  On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The net operating income computed using the contribution approach for the first quarter is:
A) $30,000 
B) $180,000 
C) $140,000 
D) $0

Quizplus · Accepted Answer

The Answer of The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:  On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The net operating income computed using the contribution approach for the first quarter is:
A) $30,000 
B) $180,000 
C) $140,000 
D) $0

The University Store, Incorporated Is the Major Bookseller for Four