If a Company's Total Fixed Costs Decreased by $6,000 and Its

question 89

Multiple Choice

If a company's total fixed costs decreased by $6,000 and its contribution margin increased by $12,000, net income would:

• A) Decrease by $18,000
• B) Decrease by $ 6,000
• C) Increase by $ 6,000
• D) Increase by $18,000

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Definitions:

Secondary Process

A term from psychoanalytic theory referring to the rational and conscious thought processes that are involved in problem solving and decision making.

Primary Process

A mode of thinking primarily associated with the unconscious and characterized by the free and associative flow of thoughts and impulses.

Rational

Pertains to the quality of being based on or in accordance with reason or logic; thinking and acting sensibly and logically.

Fixation

An obsessive focus or attachment to a person, concept, or object, often hindering emotional and psychological development.