Schister Systems Uses the Following Data in Its Cost-Volume-Profit Analyses

question 345

Multiple Choice

Schister Systems uses the following data in its Cost-Volume-Profit analyses: What is total contribution margin if sales volume increases by 20%?

• A) $80,000
• B) $158,400
• C) $200,000
• D) $144,000

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the rate at which an asset's book value depreciates.

Salvage Value

The projected amount an asset is expected to yield when it is sold after its period of usability has ended.

Book Value

The value of an asset according to its balance sheet account balance, which accounts for the cost of the asset minus any depreciation, amortization, or impairment costs.