If Variable Selling and Administrative Expenses Totaled $124,000 for the Year

question 127

Multiple Choice

If variable selling and administrative expenses totaled $124,000 for the year (80,000 units at $1.55 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) ,the effect of the quantity factor on the change in contribution margin is:

• A) $3,000 increase
• B) $3,500 decrease
• C) $3,000 decrease
• D) $3,500 increase

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Definitions:

Realistic Goal

An attainable and specific objective set by an individual, taking into account current resources, constraints, and abilities, fostering motivation and direction.

Desired Behavior

A specific action or response that is targeted for increase or improvement in various settings, including psychological therapy and behavior modification programs.

Respondent Behavior

A type of behavior in psychology that is elicited by a stimulus, and is reflexive or involuntary.

Operant Behavior

Behavior that is controlled by consequences, including rewards and punishments, following the behavior.