Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served.

Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each.
-What would the operating income be at Atwood Dairy Bar if the owner prepared a traditional income statement for the month?
A) $16,000
B) $14,000
C) $10,425
D) $2,000

Question

Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served.
  
Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each.
-What would the operating income be at Atwood Dairy Bar if the owner prepared a traditional income statement for the month?
A) $16,000 
B) $14,000 
C) $10,425 
D) $2,000

Quizplus · Accepted Answer

Operating income is calculated by subtracting operating expenses from gross profit. Without specific numbers from Atwood Dairy Bar's income statement, such as revenue, cost of goods sold, and operating expenses, it's impossible to accurately determine the operating income. Therefore, without additional context or numerical data, the correct answer cannot be determined based on the information provided.

Atwood Dairy Bar Sells Its Famous Soft-Serve Ice Cream Cones