If a Company's Fixed Costs Were to Increase,the Effect on a Profit-Volume

question 100

Multiple Choice

If a company's fixed costs were to increase,the effect on a profit-volume graph would be that the

• A)contribution margin line would shift upward parallel to the present line.
• B)contribution margin line would shift downward parallel to the present line.
• C)slope of the contribution margin line would be more pronounced (steeper).
• D)slope of the contribution margin line would be less pronounced (flatter).

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Definitions:

Level of Confidence

The degree of certainty, often expressed as a percentage, that a parameter lies within a specified range of values.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Interval Estimation

Estimation of a population parameter with a range, or interval, of values within which one has a certain degree of confidence the population parameter falls.

Confidence Interval

A collection of numerical indicators, derived from sampling statistics, believed to contain the estimations of an obscure population parameter.