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An Income Statement for Sam's Bookstore for the First Quarter

Question 10

Multiple Choice

An income statement for Sam's Bookstore for the first quarter of the year is presented below: An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $50. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: A) $214,000 B) $826,500 C) $166,500 D) $783,500 On average, a book sells for $50. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:


A) $214,000
B) $826,500
C) $166,500
D) $783,500

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