problem: An income statement for Crandall's Bookstore for 1st quarter of the current year is given below:
On average, a book sells for dollar 50. Variable selling expenses are $5.50 per book, with remaining selling expenses being fixed. The variable administrative expenses are three percent of sales, with the remainder being fixed.
The cost formula for selling & administrative expenses with "X" equal to the number of books sold is:
[A] Y = $98,000 + $42X
[B] Y = $84,000 + $42X
[C] Y = $98,000 + $35X
[D] Y = $84,000 + $35X