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:

Agitated

A state of increased restlessness or activity, often indicative of distress or an emotional response to discomfort or illness.

Delirious

A state of mental confusion that can include illusions, disorientation, and irrational behavior, often due to illness or intoxication.

Side Effects

Unintended, often adverse reactions to a drug or treatment.

Daily Aspirin

The routine intake of a low-dose aspirin, often prescribed to prevent blood clots and reduce the risk of heart attack or stroke.