Figure 11-3 -In Figure 11-3,which Line Represents the Change in the Consumption

question 36

Multiple Choice

Figure 11-3

-In Figure 11-3,which line represents the change in the consumption schedule caused by an increase in the personal income tax?

• A) C1 in graph (a)
• B) C2 in graph (a)
• C) C1 in graph (b)
• D) C2 in graph (b)

---

Definitions:

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product.

Production Increase

An uptick in the amount of products manufactured by a company over a set period.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a good or service.

Relevant Range

The extent of activity or volume over which the specific cost assumptions and behaviors are considered valid.