A)Choice A

question 22

Multiple Choice

$$\begin{array} { | l | l | l | } \hline & \text { Contribution margin } & \text { Break-even point } \\\hline \text { A. } & \text { Increase } & \text { Decrease } \\\hline \text { B. } & \text { Decrease } & \text { Increase } \\\hline \text { C. } & \text { Unchanged } & \text { Increase } \\\hline \text { D. } & \text { Unchanged } & \text { Unchanged } \\\hline\end{array}$$

• A)Choice A.
• B)Choice B.
• C)Choice C.
• D)Choice D.

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Definitions:

Capitalization

The total value of all a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Repairs and Maintenance

The expenses a company incurs to keep its assets in working condition, not extending the life of the asset but rather restoring it or maintaining current condition.

Capital Expenditure

Long-term investments or expenditures made by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.