A Company Has Provided the Following Data If the Sales Volume Decreases by 25%,the Variable Cost Per

question 9

Multiple Choice

A company has provided the following data:
$\begin{array}{|l|r|}\hline \text { Sales } & 3,000 \text { units } \\\hline \text { Sales price } & \$ 70 \text { per unit } \\\hline \text { Variable cost } & \$ 50 \text { per unit } \\\hline \text { Fixed cost } & \$ 25,000 \\\hline\end{array}$
If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,what will the outcome be for operating income?

• A) Decrease by $31,875.
• B) Decrease by $15,000.
• C) Increase by $20,625.
• D) Decrease by $3,125.

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Definitions:

Dehumanizing

The process of depriving a person or group of positive human qualities, often leading to the justification of poor treatment or abuse.

Hospital Experience

The ensemble of perceptions, interactions, and events that patients and their families encounter during a stay or visit to a hospital.

Diagnoses

The identification of the nature of an illness or other problem by examination of the symptoms.

Cultural Competence

The concept of acknowledging and incorporating a patient’s cultural background as part of the treatment process; the recognition that patients’ beliefs shape their approach to health care.