21) On a contribution margin income statement, all variable costs are listed: A) above the contribution margin line. B) above the gross profit line. C) below the contribution margin line. D) below the...

21) On a contribution margin income statement, all variable costs are listed:

A) above the contribution margin line.

B) above the gross profit line.

C) below the contribution margin line.

D) below the gross profit line.

22) Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.  What would her contribution margin be if she prepared a contribution margin income statement for a month?

A) $18,900

B) $13,500

C) $8,100

D) $5,400

23) Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.  What would her operating income be if she prepared a contribution margin income statement for a month?

A) $8,100

B) $7,300

C) $13,500

D) $5,400

24) Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones for $3.00 each.  What would her operating income be if she prepared a traditional income statement for a month?

A) $13,500

B) $5,400

C) $8,100

D) $7,300

25) Fresno Home Oil Services wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Fresno Home Oil Services has the following data available.

Assume Fresno Home Oil Services uses the high-low method to determine its operating cost equation and earns $0.50 per mile for 18,000 miles.  What would its contribution margin be for a month if Fresno Home Oil Services prepared a contribution margin income statement for the month?

A) $900

B) $17,100

C) $9,000

D) $8,100

26) Fresno Home Oil Services wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Fresno Home Oil Services has the following data available.

Fresno Home Oil Services uses the high-low method to determine its operating cost equation and earns $0.50 per mile for 18,000 miles.  What would its operating income (loss) be for a month if Fresno Home Oil Services prepared a contribution margin income statement for the month?

A) $900

B) ( $1,175)

C) $8,100

D) $9,000

27) Fresno Home Oil Services wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Fresno Home Oil Services has the following data available.

Fresno Home Oil Services uses the high-low method to determine its operating cost equation and earns $0.50 per mile for 18,000 miles.  What would its operating income (loss) be for a month if Fresno Home Oil Services prepared a traditional income statement for a month?

A) $9,000

B) $900

C) $8,100

D) ($1,175)

28) Toby's Farm Store buys portable generators for $500 and sells them for $800. He pays a sales commission of 5% of sales revenue to his sales staff. Toby pays $2,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Toby sold 200 generators in June. If Toby prepares a contribution margin income statement for the month of June, what would be his contribution margin?

A) $268,000

B) $160,000

C) $52,000

D) $108,000

29) Toby's Farm Store buys portable generators for $500 and sells them for $800. He pays a sales commission of 5% of sales revenue to his sales staff. Toby pays $2,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Toby sold 200 generators in June. If Toby prepares a traditional income statement for the month of June, what would be his gross profit?

A) $260,000

B) $160,000

C) $60,000

D) $100,000

30) Toby's Farm Store buys portable generators for $500 and sells them for $800. He pays a sales commission of 5% of sales revenue to his sales staff. Toby pays $2,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Toby sold 200 generators in June. If Toby prepares a traditional income statement for the month of June, what would be his operating income?

A) $72,000

B) $48,200

C) $60,000

D) $160,000