The Income Statement for Symbiosis Manufacturing Company for 2018 Is

question 41

Multiple Choice

The income statement for Symbiosis Manufacturing Company for 2018 is as follows: $\begin{array}{lr}\text { Sales (10,000 units) } & \$ 120,000 \\\text { Variable expenses } &72,000\\\text { Contribution margin } & \$ 48,000 \\\text { Fixed expenses } & 36,000\\\text { Operating income } & \$12,000\end{array}$
If sales increase by $60,000, what will happen to profit?

• A)increase by $60,000
• B)increase by $36,000
• C)increase by $6,000
• D)increase by $24,000

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Definitions:

Historical Rate

An exchange rate used to convert foreign currency amounts involved in a transaction to the functional currency at the date the transaction occurred.

Temporal Methods

An accounting technique used to convert the financial statements of a subsidiary into the parent company's presentation currency, applying exchange rates based on the timing of the underlying transactions.

Translating

The process of converting financial data from one currency to another currency in financial reporting.

Accounting Standards

Regulations and guidelines for financial reporting and accounting practices that ensure consistency, transparency, and comparability of financial statements.