Woolford's CVP Income Statement Included Sales of 4,000 Units, a Selling

question 15

Multiple Choice

Woolford's CVP income statement included sales of 4,000 units, a selling price of $50, variable expenses of $30 per unit, and net income of $25,000.Fixed expenses are

• A)$55,000.
• B)$80,000.
• C)$120,000.
• D)$200,000.

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Definitions:

Directly Proportional

The relationship between two variables where if one variable increases, the other variable increases by the same factor.

Total Revenue

The total income generated from the sale of goods or services, calculated as the unit price multiplied by the quantity sold.

Constant of Proportionality

The constant of proportionality is the factor that relates two variables that are directly proportional to one another.

Stack Emissions

Gases or particles released into the atmosphere from industrial stacks or chimneys.