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

question 172

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:

Perfect

To complete or make flawless; often used in legal contexts to denote the finalization of a right or claim.

Perfection by Possession

A process in secured transactions where a creditor secures an interest in the collateral by taking physical possession of it, ensuring priority over other creditors.

Perfection by Filing

A legal process involving the filing of documents to protect a secured interest in a debtor's collateral, ensuring priority over claims from other creditors.

Financing Statement

A document filed to give public notice of a security interest in personal property, which is usually part of a secured transaction.