An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The net operating income using the contribution approach for the first quarter is:
A) $270,000
B) $180,000
C) $144,000
D) $66,000

Question

An income statement for Sam's Bookstore for the first quarter of the year is presented below:  On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The net operating income using the contribution approach for the first quarter is:
A) $270,000 
B) $180,000 
C) $144,000 
D) $66,000

Quizplus · Accepted Answer

The Answer of An income statement for Sam's Bookstore for the first quarter of the year is presented below:  On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The net operating income using the contribution approach for the first quarter is:
A) $270,000 
B) $180,000 
C) $144,000 
D) $66,000

An Income Statement for Sam's Bookstore for the First Quarter