An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:

On average, a book sells for $90. Variable selling expenses are$3 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales, with their maunder being fixed.
The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:
a. Y = $80,400 + $78.2 X
b. Y = $86,400 + $68.7 X
c. Y = $81,400 + $78.2 X
d. Y = $80,400 + $68.7 X

Transcribed Image Text:

$720,000 Sales Cost of goods sold 504.000 Gross margin 216,000 Selling and administrative expenses: Selling $63,000 Administrative 63,000 126,000 $90.000 Net operating income