Assume Only the Specified Parameters Change in a Cost-Volume-Profit Analysis

question 118

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis. If the contribution margin increases by $6 per unit, then ________.

• A) fixed costs increases by $6 per unit
• B) operating income decreases by $6 per unit
• C) fixed costs decreases by $6 per unit
• D) operating income increases by $6 per unit

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Definitions:

Social Cognitive Theory

A theory that suggests learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.

Self-Regulation

The ability of an individual or organization to monitor and control their behaviors, actions, or thoughts to achieve certain goals.

Discrepancy

A lack of compatibility or uniformity that leads to a difference between two or more things, such as expectations versus reality.