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

question 23

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis.If the contribution margin increases by $6 per unit,then ________.

• A) fixed costs increases by $6 per unit
• B) operating profits decreases by $6 per unit
• C) fixed costs decreases by $6 per unit
• D) operating profits increases by $6 per unit

---

Definitions:

Z-score

An indicator that shows the number of standard deviations a particular value is away from the average.

Standard Normal Curve

A symmetric bell-shaped curve that represents the distribution of a standardized variable, with a mean of 0 and a standard deviation of 1.

Area

The extent or measurement of a surface; the size of a two-dimensional space.

Z-score

A statistical measure that indicates the number of standard deviations a data point is from the mean.