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

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Definitions:

Prehistory

The period of time before recorded history, studied through archaeology, which includes the study of ancient cultures and civilizations.

Industrial Revolution

A period of major industrialization during the late 18th and early 19th centuries that transformed mainly agrarian, rural societies in Europe and America into industrialized, urban ones.

Middle Ages

A historical period in Europe lasting from the 5th to the late 15th century, marked by the fall of the Western Roman Empire and preceding the early modern era.

Superego

In Freudian psychoanalysis, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.