Under Variable costing, fixed expenses: Select one: a. Are subtracted from sales to arrive at the contribution margin b. Are subtracted from sales to arrive at the gross profit c. Are expensed in the current period d. A and C

The answer is C. Are expensed in the current period

Explanation:

Under variable costing, fixed expenses is treated as a period cost and is expensed in the current period's income statement.

Option A is incorrect because variable cost and not fixed cost cost are subtracted from sales to arrive at contribution margin

Option B is also incorrect because cost of sales and not fixed cost/expenses are subtracted from sales to arrive at gross profit.

business modeling is correct

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23