income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 840,000 Cost of goods sold 545,000 Gross margin 295,000 Selling and administrative expenses Selling $ 116,000 Administration 136,000 252,000 Net operating income $ 43,000 On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice $239,000 $758,800 $213,800 $626,200
income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 840,000 Cost of goods sold 545,000 Gross margin 295,000 Selling and administrative expenses Selling $ 116,000 Administration 136,000 252,000 Net operating income $ 43,000 On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice $239,000 $758,800 $213,800 $626,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An income statement for Sam's Bookstore for the first quarter of the year is presented below:
| Sam's Bookstore | ||||
| Income Statement | ||||
| For Quarter Ended March 31 | ||||
| Sales | $ | 840,000 | ||
| Cost of goods sold | 545,000 | |||
| Gross margin | 295,000 | |||
| Selling and administrative expenses | ||||
| Selling | $ | 116,000 | ||
| Administration | 136,000 | 252,000 | ||
| Net operating income | $ | 43,000 | ||
On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed.
The contribution margin for Sam's Bookstore for the first quarter is:
Multiple Choice
-
$239,000
-
$758,800
-
$213,800
-
$626,200
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