Clay Earth Company sells ceramic pottery at a wholesale price of $ 5.00 per unit. The variable cost of manufacture is $ 1.25 per unit. The fixed costs are $ 6 comma 700 per month. It sold 4 comma 200 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $ 9 comma 050 B. $ 14 comma 300 C. ($ 6 comma 700) D. ($ 9 comma 050)

A. $ 9 comma 050

Explanation:

The operating income(loss) of a business is the result of the sales less operating costs. The operating cost is made up of the fixed cost and the variable cost.

If the Sales is more than the operating cost, the business makes an income otherwise, a loss.

Sales = $5 * 4200

= $21,000

Operating cost = $1.25 * 4200 + $6,700

= $11,950

Operating income(loss) = $21,000 - $11,950

= $9,050

B. Personal credit if it is a personal loan

D. If the individual applies to start a business

Explanation:

Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.