University Store, Inc.
Income Statement
For the Quarter Ended March
tabletableSalesCost of goodstableCost of goodssoldtableSelling andadministrativeexpensesSelling$AdministrativetableNet operatingincome$
On average, a book sells for $ Variable selling expenses are $ per book; the remaining selling expenses are fixed. The variable administrative expenses are of sales; the remainder of the administrative expenses are fixed.
The cost formula for selling and administrative expenses with X equal to the number of books sold is:
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