Lister Corporation Has Provided the Following Contribution Format Income Statement

question 1

Multiple Choice

Lister Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

-If sales increase to 3,040 units,the increase in net operating income would be closest to:

• A) $420.00
• B) $140.00
• C) $1,200.00
• D) $780.00

---

Definitions:

Rebalanced

The process of realigning the weightings of a portfolio of assets to maintain an original or desired level of asset allocation or risk.

Modified Duration

A measure of the price sensitivity of a bond or other debt instrument to an interest rate change, factoring in the changing cash flow timings.

Price-volatile

Characteristic of a financial instrument whose price can undergo significant fluctuations in a short period.

Higher Credit Rating

Indicates a stronger likelihood that a borrower, either a corporation or government entity, will meet its debt obligations, signifying lower credit risk.