Answer the Following Questions Using the Information Below

question 49

Multiple Choice

Answer the following questions using the information below:
Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in $7,000 of sales revenue, $2,800 of variable costs, and $1,200 of fixed costs.
-If sales increase by $25,000, operating income will increase by:

• A)$10,000
• B)$15,000
• C)$22,200
• D)None of these answers are correct.

Appreciate the significance of budgets and forecasts in financial planning and control.

Understand the role of noncash expenses and their effect on financial statements.

Grasp the importance of liquidity ratios in assessing an organization’s short-term financial stability.

Identify the relevance of profitability ratios in evaluating a firm’s financial performance.

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Definitions:

President

An executive role within an organization, typically the highest-ranking officer, responsible for making major corporate decisions and managing overall operations.

Several Months

A term indicating a period of time extending through multiple calendar months.

Current Year

The present calendar year or fiscal year in which business is conducted or financial statements are prepared.

Standard Form

A recognized format or structure for documents or problems, making it easier to use, compare, or analyze.