Orion Company Sells Several Products

question 148

Multiple Choice

Orion Company sells several products. Information of average revenue and costs is as follows:

The company sells 12,000 units at the end of the year.
If direct labor and direct material costs increase by $1 each, contribution margin ________.

• A) increases by $24,000
• B) increases by $12,000
• C) decreases by $24,000
• D) decreases by $12,000

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Definitions:

Central Nervous System

The complex network of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.

Bitter Taste

One of the basic taste sensations, perceived primarily by the taste buds, and is generally considered undesirable or unpleasant by many humans.

Cough Syrup

A medication used to alleviate symptoms associated with coughs and colds by suppressing cough reflexes or loosening mucus.

Skin Senses

The ability to perceive touch, temperature, pressure, and pain through the skin, one of the body's largest sensory organs.