A Company Has Provided the Following Data: If the Sales

question 156

Multiple Choice

A company has provided the following data: If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,net income will:

• A) decrease by $31,875.
• B) decrease by $15,000.
• C) increase by $20,625.
• D) decrease by $3,125.

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Definitions:

Overbilling

The practice of charging more than the agreed price or more than the services or goods provided are worth, often considered fraudulent or unethical.

Peanut Allergy

An allergic reaction that occurs when the body's immune system mistakenly identifies peanut proteins as harmful, leading to potentially severe symptoms.

Sole Proprietorship

A business structure where a single individual owns and operates the business, responsible for all debts and legal actions against the business.

Personal Liability

The responsibility of an individual to bear the loss or obligation of debt out of their personal assets.