Which of the Following Statements Is True When Making Decisions

question 81

Multiple Choice

Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis?

• A) As long as the contribution margin is a positive number,net income will be positive.
• B) As long as variable costs are more than fixed costs,net income will be negative.
• C) As long as the contribution margin is greater than fixed costs,net income will be positive.
• D) As long as the sales price per unit is greater than fixed costs per unit,net income will be positive.

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Definitions:

Superior Vena Cava

A big vein that transports blood lacking oxygen from the body's upper section to the right atrium of the heart.

Pulmonary Artery

The blood vessel that transports blood from the heart's right ventricle to the lungs to receive oxygen.

Pulmonary Vein

A vein that carries oxygenated blood from the lungs back to the left atrium of the heart.

Superior Vena Cava

The large vein that carries deoxygenated blood from the upper half of the body to the heart's right atrium.