Operating Profit Typically Increases as Sales Volume Does What

question 28

Multiple Choice

Operating profit typically increases as sales volume does what?

• A) Maintains a good ratio
• B) Decreases
• C) Increases

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to do one thing over another.

Production Possibilities Schedule

A table or graph that shows the various combinations of two goods or services that an economy can produce using all its resources efficiently.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen; the value of the next best choice.