Assume Only the Specified Parameters Change in a Cost-Volume-Profit Analysis

question 163

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis.If the contribution margin increases by $2 per unit,then operating profits will:

• A)also increase by $2 per unit.
• B)decrease by $2 per unit.
• C)increase by less than $2 per unit.
• D)be indeterminable.

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Definitions:

Tetrapods

Four-limbed vertebrates: the amphibians, reptiles, birds, and mammals.

Actinopterygii

Actinopterygii, commonly known as ray-finned fishes, constitute a class of bony fishes characterized by the radiating structure of their fins, which are supported by bony spines.

Flexible Fins

Adaptations in aquatic organisms allowing for maneuverability, stability, and propulsion in water.

Temporal Openings

Temporal Openings are large gaps or spaces in the skulls of some vertebrates, allowing for the attachment of jaw muscles thus facilitating movement and strength.