Collins Co

question 148

Multiple Choice

Collins Co. earned a profit of $2,000 in January. The company has estimated that sales will increase by $13,500 in February. Assume that fixed costs for January were $3,000 (and are not expected to change) and the variable cost ratio is 40%. What is the expected profit for the next month?

• A) $8,100
• B) $10,100
• C) $13,500
• D) Not enough information available

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Definitions:

Appeal To Emotion

A logical fallacy where someone tries to win an argument by eliciting an emotional response instead of presenting logical reasons.

Fallacy

An erroneous argument or reasoning that results in a false or misleading conclusion.

Logic

The systematic study of the form of arguments; a branch of philosophy dealing with the principles of reasoning and argumentation.

Appeal To Majority

A fallacy in reasoning that argues that a proposition must be true because many or most people believe it.