Consider the Statement: "When the British Government Tripled University Fees

question 3

Multiple Choice

Consider the statement: "When the British government tripled university fees for foreign students in Great Britain,about one-half of them left to study in other countries." This move will ___________ university revenues from foreign students in Great Britain.

• A)decrease
• B)not change
• C)increase
• D)cannot determine without further information

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point. It indicates the amount of sales decline a business can endure before it starts incurring losses.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Operating Income

A measure of a company's profit generated from its core business operations, excluding deductions of interest and tax.