Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price$73.00 Per-unit variable costs: Invoice cost 40.45 Sales commissions 17.45 Total per-unit variable costs$57.90 Total annual fixed costs: Advertising$54,500 Rent 77,000 Salaries 225,000 Total annual fixed costs$356,500 If 38,900 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.) Multiple Choice $230,890. $270,890. $200,890. $330,890.

Operating expenses are the expenses related to the core business or main activity line of the…

Answered: If 38,900 office chairs were sold,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.


Sales price	$	73.00
Per-unit variable costs:
Invoice cost		40.45
Sales commissions		17.45
Total per-unit variable costs	$	57.90
Total annual fixed costs:
Advertising	$	54,500
Rent		77,000
Salaries		225,000
Total annual fixed costs	$	356,500