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20 June, 02:15

Exceptional Events provides event management services. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The following data relate to its three segments for the month of June: Maribel Jessica Timothy Sale revenue $ 6 comma 000 $ 10 comma 700 $ 12 comma 350 Variable costs $ 5 comma 900 $ 7 comma 100 $ 12 comma 000 The business segments had the following number of customers: Maribel, 26 ; Jessica, 29 ; and Timothy, 35. The total fixed costs for the month amount to $ 3 comma 500. What is the operating income of Exceptional Events for the month of June? A. $ 100 B. $ 4 comma 050 C. $ 29 comma 050 D. $ 550

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  1. 20 June, 02:56
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    Net operating income = $550

    Explanation:

    Giving the following information:

    Maribel:

    Sales = $6,000

    Variable cost = $5,900

    Contribution margin = $100

    Jessica:

    Sales = $10,700

    Variable cost = $7,100

    Contribution margin = $3,600

    Timothy:

    Sales = $12,350

    Variable costs = $12,000

    Contribution margin = $350

    The total fixed costs for the month amount to $3,500.

    Net operating income = contribution margin - fixed costs

    Net operating income = (100 + 3,600 + 350) - 3,500 = $550
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