A Company Has Provided the Following Data: If the Dollar

question 132

Multiple Choice

A company has provided the following data: If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,net income will:

• A) increase by $61,000.
• B) increase by $20,000.
• C) increase by $3,500.
• D) increase by $11,000.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied over a given period.

Most Elastic

Refers to the responsiveness of the demand or supply of a good or service to changes in its price, with the most elastic being the most sensitive to price changes.

Supply Least Elastic

Characterizes goods or services for which supply does not significantly change in response to price changes, often due to limitations in production capacity or availability of resources.

Supply Curve

is a graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.