Answer the following questions using the information below:
Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.
-What is the Bridal Shoppe's operating income when 200 dresses are sold?
A) $30,000
B) $80,000
C) $200,000
D) $100,000

Question

Quizplus · Accepted Answer

Operating income is calculated as (Selling Price - Variable Cost) * Quantity Sold - Fixed Costs. Here, ($1,000 - $400) * 200 - $90,000 = $30,000.

Answer the Following Questions Using the Information Below