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 $ 76.00 Per-unit variable costs: Invoice cost 40.25 Sales commissions 17.25 Total per-unit variable costs $ 57.50 Total annual fixed costs: Advertising $ 54,300 Rent 76,600 Salaries 224,600 Total annual fixed costs $ 355,500 If 38,500 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.)
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 $ 76.00 Per-unit variable costs: Invoice cost 40.25 Sales commissions 17.25 Total per-unit variable costs $ 57.50 Total annual fixed costs: Advertising $ 54,300 Rent 76,600 Salaries 224,600 Total annual fixed costs $ 355,500 If 38,500 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.)
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 | $ | 76.00 | |
| Per-unit variable costs: | |||
| Invoice cost | 40.25 | ||
| Sales commissions | 17.25 | ||
| Total per-unit variable costs | $ | 57.50 | |
| Total annual fixed costs: | |||
| Advertising | $ | 54,300 | |
| Rent | 76,600 | ||
| Salaries | 224,600 | ||
| Total annual fixed costs | $ | 355,500 | |
If 38,500 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.)
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