Variable Costs as a Percentage of Sales for Lemon Inc

question 125

Multiple Choice

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?

• A) $8,000 increase
• B) $8,000 decrease
• C) $30,000 decrease
• D) $30,000 increase

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Definitions:

Personal Attributes Questionnaire (PAQ)

A self-report inventory designed to measure gender role stereotypes and the extent to which an individual identifies with masculine or feminine characteristics.

Femininity

A set of attributes, behaviors, and roles generally associated with girls and women, often considered in contrast to masculinity.

Sex

Biological and physiological characteristics that define humans as male or female, but in a broader sense, it also refers to activities related to sexual intercourse.

Gender

Roles, behaviors, activities, and attributes deemed appropriate for men and women by societal norms and constructs.