Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served. (Click the icon to view the information.) Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. What would the operating income be at Atwood Dairy Bar if the owner prepared a contribution margin income statement for that month? O A. $16,000 OB. $10,425 OC. $14,000 O D. $2,000 Information Month Number of softserve cones Total operating costs April 8,200 $5,200 May 8,600 $5,500 June 7,500 $4,500 July 9,700 $6,000 August 8,900 $5,900 September 5,700 $5,000 Print Done -
Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served. (Click the icon to view the information.) Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. What would the operating income be at Atwood Dairy Bar if the owner prepared a contribution margin income statement for that month? O A. $16,000 OB. $10,425 OC. $14,000 O D. $2,000 Information Month Number of softserve cones Total operating costs April 8,200 $5,200 May 8,600 $5,500 June 7,500 $4,500 July 9,700 $6,000 August 8,900 $5,900 September 5,700 $5,000 Print Done -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the
next summer season. She has the following information available about the operating costs and the number of soft-serve cones served.
(Click the icon to view the information.)
Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. What would the operating income be at Atwood Dairy Bar if
the owner prepared a contribution margin income statement for that month?
O A. $16,000
OB. $10,425
OC. $14,000
O D. $2,000
Information
Month
Number of softserve cones
Total operating costs
April
8,200
$5,200
May
8,600
$5,500
June
7,500
$4,500
July
9,700
$6,000
August
8,900
$5,900
September
5,700
$5,000
Print
Done
-
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education