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:

Mean Weight

The average mass of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.

Sample

A subset of individuals, items, or data taken from a larger population, used to make inferences about the whole population.

Confidence Interval

A span of numbers obtained from sampled data which probably encompasses the value of a not yet known parameter of the overall population.

Cholesterol

A waxy, fat-like substance found in the cells of the body, important for various biological functions but harmful at high levels.