At Its Present Level of Operations,a Small Manufacturing Firm Has

question 65

Multiple Choice

At its present level of operations,a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales.Based on variable costing,if sales change by $1.00,income will change by

• A)$0.25.
• B)$0.10.
• C)$0.75.
• D)can't be determined from the information given.

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Definitions:

Minority Shareholders

Individuals or entities that own less than 50% of a company's shares, often with limited control over corporate decisions.

Cumulative Voting

A method of voting in corporate elections that allows shareholders to concentrate all their votes on one candidate as opposed to distributing them among multiple candidates.

Corporate Veil

A legal concept separating the actions and liabilities of a corporation from those of its shareholders or directors.

Personal Liability

The legal responsibility of an individual to settle a debt or pay for damages out of their own assets.