If 38,900 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.) Multiple Choice $230,890. $270,890. $200,890. $330,890.
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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 | $ | 73.00 | |
| Per-unit variable costs: | |||
| Invoice cost | 40.45 | ||
| Sales commissions | 17.45 | ||
| Total per-unit variable costs | $ | 57.90 | |
| Total annual fixed costs: | |||
| Advertising | $ | 54,500 | |
| Rent | 77,000 | ||
| Salaries | 225,000 | ||
| Total annual fixed costs | $ | 356,500 | |
If 38,900 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.)
-
$230,890.
-
$270,890.
-
$200,890.
-
$330,890.
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