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:

Accounting Commission

A regulatory body or committee responsible for overseeing the practices and standards of accounting and financial reporting.

Hybrid Rule Making

A regulatory process that combines elements of both formal rulemaking procedures and informal rulemaking procedures.

Freedom of Information Act (FOIA)

A United States federal law that grants public access to documents or other data in the possession of government agencies, subject to various exemptions.

DMV

Department of Motor Vehicles, a state-level government agency that administers vehicle registration and driver licensing.