A Decrease in the Sales Price in the Basic Cost-Volume-Profit

question 56

Multiple Choice

A decrease in the sales price in the basic cost-volume-profit model would

• A)require a recomputation of the gross profit per unit.
• B)be offset by an increase in unit costs.
• C)decrease the break-even volume.
• D)increase the break-even volume.

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Definitions:

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

National Labor Relations Act

A foundational United States labor law that protects the rights of employees to organize and to bargain collectively with their employers.

Employee Polygraph Protection Act

A United States federal law that generally prevents employers from using lie detector tests, either for pre-employment screening or during the course of employment, with certain exceptions.

Polygraph Tests

A method used to measure and record physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while the subject answers a series of questions, purportedly to indicate truthfulness.