A Company Has Provided the Following Data

question 308

Multiple Choice

A company has provided the following data:
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:

Fertilization

The union of the ovum and sperm.

Recessive

Pertaining to a gene that is expressed in the phenotype only when its allele is identical, needing two copies (one from each parent) to exhibit the trait.

Dominant

Referring to a trait, gene, or characteristic that supersedes another in genetic expression when both are present.

Ovum

The female sex cell, or egg.