Zucca Company Has a Contribution Margin Per Unit of $54

question 366

Multiple Choice

Zucca Company has a contribution margin per unit of $54. If 6,000 more items are sold, and fixed expenses remain the same, the net change in operating income will be

• A) $(324,000).
• B) $324,000.
• C) $111.
• D) $6,000.

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Definitions:

Mediation

A conflict resolution process involving a neutral third party who assists disputing parties in finding a mutually acceptable agreement.

Work Stoppages

Events where workers cease operations, often as a form of protest or to negotiate better working conditions or wages.

Neutral Third Party

An unbiased individual or group not directly involved in a dispute or negotiation, brought in to facilitate a resolution or agreement.