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:

Anorexia Nervosa

An eating disorder characterized by an obsessively reduced food intake and an intense fear of gaining weight.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by purging, in an attempt to control weight.

Eating Disorder

A mental disorder characterized by abnormal eating habits that negatively affect a person's physical or mental health.

Food Safety

Practices and precautions taken to prevent foodborne illnesses and ensure that food is handled, prepared, and stored in ways that preserve its quality and safety.