In CVP Analysis, Managers Usually Assume That the Revenue Function

question 71

Multiple Choice

In CVP analysis, managers usually assume that the revenue function is linear. Which of the following equations best represents a linear revenue function if the cost is a variable cost?

• A) y = $200 + $60x
• B) y = $60x2
• C) y = $60x
• D) y = $200

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Definitions:

Physiological Reactions

Refers to the body's automatic responses to stimuli, involving various biological reactions such as changes in heart rate, breathing, or skin temperature.

Hypnotized

The state of being under hypnosis, marked by heightened focus, concentration, and suggestibility, often used for therapeutic purposes.

Pretenders

Individuals who feign or simulate certain attributes, skills, or illnesses for various purposes, potentially deceiving others.

Psychological Disorders

Patterns of behavioral, cognitive, or emotional symptoms that cause distress, impairment, and significantly deviate from cultural norms, often requiring clinical intervention.