A Company Has Sales of $87,500 at the Break-Even Point

question 23

Multiple Choice

A company has sales of $87,500 at the break-even point and fixed costs are $35,000.Assuming cost behaviour does not change if sales increase by $20,000 how much will operating income will increase by?

• A) $20,000.00.
• B) $12,000.00.
• C) $8,000.00.
• D) $4,000.00.

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Definitions:

Perceptual Patterns

The ways in which individuals organize and interpret sensory information from their environment, forming meaningful understandings of the world.

Sensations

The immediate experiences generated from the stimulation of the senses, including sight, sound, smell, taste, and touch.

Proposition

A statement or assertion put forward for consideration or debate, often as part of an argument or hypothesis.

Intelligence

The ability to acquire knowledge, think abstractly, understand complex ideas, and adapt to new situations.