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: $$\begin{array} { | l | r | r | r | }
\hline & \text { Maribel } & \text { Jessica } & \text { Timothy } \
\hline \text { Sale revenue } & \$ 8000 & \$ 10,600 & \$ 13,350 \
\hline \text { Variable costs } & \$ 5700 & \$ 7000 & \$ 12,000 \
\hline
\end{array}$$ The business segments had the following number of customers: Maribel,25; Jessica,29; and Timothy,34.The total fixed costs for the month amount to $3500.What is the operating income of Exceptional Events for the month of June?
A)$7250
B)$3750
C)$31,950
D)$2300

Question

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: $$\begin{array} { | l | r | r | r | } 
\hline & \text { Maribel } & \text { Jessica } & \text { Timothy } \
\hline \text { Sale revenue } & \$ 8000 & \$ 10,600 & \$ 13,350 \
\hline \text { Variable costs } & \$ 5700 & \$ 7000 & \$ 12,000 \
\hline
\end{array}$$ The business segments had the following number of customers: Maribel,25; Jessica,29; and Timothy,34.The total fixed costs for the month amount to $3500.What is the operating income of Exceptional Events for the month of June?
A)$7250
B)$3750
C)$31,950
D)$2300

Quizplus · Accepted Answer

The operating income is calculated as total sales revenue minus total variable costs and total fixed costs. Total sales revenue is $31,950 ($8,000 + $10,600 + $13,350), total variable costs are $24,700 ($5,700 + $7,000 + $12,000), and fixed costs are $3,500. Therefore, operating income is $31,950 - $24,700 - $3,500 = $3,750.

Exceptional Events Provides Event Management Services The Business Segments Had the Following Number of Customers: Maribel,25;