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Schrute Farm Sales buys portable generators for $450 and sells them for $740. He pays a sales commission of 5% of sales revenue to his
Schrute Farm Sales buys portable generators for $450 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $6,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Mr. Schrute sold 700 generators in June. If Mr. Schrute prepares a traditional income statement for the month of June, what would be his operating income? O A. $518,000 O B. $169,300 O C. $236,700 OD. $203,000 Variable Costs Fixed Costs Mixed Costs Total Costs 40,000 units $140,000 $25,000 $16,000 $181,000 45,000 units ??? ??? ??? $211,500 Total variable costs at 45,000 units would be O A. $211,500. O B. $140,000. OC. $157,500. OD. unknown. If the data points were randomly scattered, the R-square value would be closer to 0 than 1. O True False Maintenance costs at Seaside Manufacturing over the past six months are listed in the following table. Month January February March April May June Maintenance cost $13,600 $14,720 $13,000 $14,480 $15,000 $13,200 Machine hours 15,500 16,900 13,000 16,600 17,000 15,000 Using the high-low method, what would the monthly fixed maintenance cost be? (Round any intermediary calculations to the nearest cent.) O A. $28,000 OB. $8,500 OC. $2,000 OD. $6,500 If the data points in a scatter plot fall in a fairly straight line, it means that there is a fairly strong relationship between cost and volume. True False
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