Use the Figure Below to Answer the Following Question(s)

question 157

Multiple Choice

Use the figure below to answer the following question(s) . Figure 4-8
Refer to Figure 4-8. Which of the following is true?

• A) The tax increases the price of soft coal by $40 per ton.
• B) Since the demand for soft coal is more inelastic than the supply, consumers bear most of the burden of the tax.
• C) Since the demand for soft coal is more elastic than the supply, suppliers of soft coal bear most of the burden of the tax.
• D) Since the supply of soft coal is highly inelastic, the primary burden of the tax is imposed on the consumers of soft coal.

Identify the factors that cause the break-even point to increase or decrease.

Understand how changes in variable costs and fixed costs affect operating income.

Calculate the margin of safety and its significance in risk assessment.

Realize the applications and limitations of cost-volume-profit (CVP) analysis.

---

Definitions:

Furry Tongue

A condition characterized by an abnormal coating on the tongue’s surface, often due to poor oral hygiene, causing it to appear "furry."

Wheezing

A high-pitched whistling sound produced during breathing, often resulting from an obstructed airway.

Rhonchi

Low-pitched, rattling lung sounds that suggest blockage or secretion in the large airways, often heard in patients with bronchitis or pneumonia.

Orthopedic Surgeon

A medical specialist who diagnoses, treats, and manages conditions related to the musculoskeletal system, including injuries and diseases of bones, joints, ligaments, tendons, muscles, and nerves.