A Company Has Provided the Following Data

question 385

Multiple Choice

A company has provided the following data:
If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,what will the outcome be for operating income?

• A) Increase by $61,000.
• B) Increase by $20,000.
• C) Increase by $3,500.
• D) Increase by $11,000.

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Definitions:

Multiple Regression Model

An analysis technique in statistics that employs numerous independent variables to forecast the result of a target variable.

Coefficient of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Sample Size

The number of observations or data points collected in a sample from a population.

Regression Parameters

Regression parameters refer to the coefficients in the equation of a regression line, representing the relationship between independent and dependent variables.