A Company Has Provided the Following Data If the Dollar Contribution Margin Per Unit Is Increased by l

question 108

Multiple Choice

A company has provided the following data: $$\begin{array} { | l | l | } \hline \text { Sales } & 3,000 \text { units } \\\hline \text { Sales price } & \$ 70 \text { per unit } \\\hline \text { Variable cost } & \$ 50 \text { per unit } \\\hline \text { Fixed cost } & \$ 25,000 \\\hline\end{array}$$ If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net income will:

• A)increase by $3,500.
• B)increase by $11,000.
• C)increase by $20,000.
• D)increase by $61,000.

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Definitions:

Unconscious Longings

Desires or wishes that an individual is not aware of but that influence emotions and behavior.

Romantic Feelings

Emotional states characterized by the desire for a deep and meaningful connection with another person, often linked with attraction and love.

Cognitive Perspective

A psychological approach that focuses on how people think, understand, and know about the world, emphasizing mental processes.

Reasoning Processes

Are mental activities involved in evaluating arguments, solving problems, and making decisions.