KrisKros Company Has a Contribution Margin Per Unit of $54

question 130

Multiple Choice

KrisKros Company has a contribution margin per unit of $54. If 9000 more items are sold, and fixed expenses remain the same, the net change in operating income will be

• A)$486,000
• B)-$486,000
• C)$9054
• D)$9000

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Definitions:

Willingness-To-Pay

The maximum amount an individual is prepared to spend to purchase a good or acquire a service, reflecting the value they place on it.

Shampoo and Conditioner

Consumer products used for hair care, with shampoo designed to clean the hair and scalp, and conditioner used to moisturize and detangle hair.

Advertising Elasticity

The responsiveness of a product's demand to changes in advertising expenditure.

Price Elasticity of Demand

A gauge for understanding the sensitivity of the demand for an item in response to price variations.