Moylan Company Has Provided the Following Information Which of the Following Statements Is True, If the Sales

question 71

Multiple Choice

Moylan Company has provided the following information: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 777,000 \\\hline \text { Variable expenses } & 504,000 \\\hline \text { Fixed expenses } & 212,000 \\\hline\end{array}$$ Which of the following statements is true, if the sales volume increases by 10%?

• A) Operating income will increase by $6,100.
• B) Operating income will increase by $27,300.
• C) Fixed expenses will increase by $21,200.
• D) Contribution margin will increase by $77,700.

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Definitions:

Distance Cue

Visual information that helps perceive the distance or depth of objects in one's environment, crucial for spatial awareness.

Parallel Rows

Lines or sequences of objects placed side by side, keeping the same distance continuously between them.

Retinal Disparity

The slight difference in the visual images that the two eyes perceive, which is important for depth perception.

Relative Luminance

The brightness of a color relative to a standard, often used in digital design and accessibility.