GB 519 RANK Career Path Begins/gb519rank.com GB 519 RANK Career Path Begins/gb519rank.com | Page 34

Fixed Costs:
Advertising $ 56,000
Rent 78,000
Salaries 226,000
Total Annual Fixed Costs $360,000
If 40,000 office chairs were sold, Stylish Sitting's operating
income would be:
Student Answer: $240,000.
$280,000.
$210,000.
$340,000.
$120,000.
UNIT 3 QUIZ
Question 14. Question : Thompson Refrigerators Inc. needs
to prepare pro forma financial
statements for the next fiscal year. To do so, the company
must
forecast its total overhead cost. The actual machine hours
and total
overhead cost are presented below for the past six months.