The University Store, Inc. 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 incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:
A) $10.60
B) $22.75
C) $19.60
D) $25.50

Question

The University Store, Inc. 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 incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:
A) $10.60 
B) $22.75 
C) $19.60 
D) $25.50

Quizplus · Accepted Answer

11ea7761_19a9_4c9d_81a5_4ba9b2173091_TB2580_00