Given the Following Data: If Sales Decrease by 500 Units,by

question 81

Multiple Choice

Given the following data: If sales decrease by 500 units,by what % would fixed expenses have to be reduced by to maintain current net income?

• A)50.0%.
• B)33.3%.
• C)25.0%.
• D)16.7%.

Compare company data with industry averages to assess a company's market standing.

Understand the impact of the profit margin ratio and the asset turnover ratio on a company's return on assets.

Recognize the reporting requirements for income from continuing operations and income (loss) from discontinued operations.

Identify the correct treatment of gains or losses on disposal of a discontinued operation in financial statements.

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Definitions:

Selective Perception

The tendency to notice and interpret elements in our environment based on our expectations, beliefs, and attitudes.

Social Perception

The process by which individuals form impressions of and make inferences about other people and events in their social world.

Fundamental Attribution

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors in explaining others' behavior.

Conceptual Filtering

The process of selectively paying attention to information that is relevant to one's existing beliefs and concepts.