Which of the Following Statements Regarding Company a Is Incorrect

question 78

Multiple Choice

Which of the following statements regarding Company A is incorrect?

• A) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units.
• B) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20 per unit.
• C) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, once it has covered its fixed costs, net income will increase by $30 for each additional unit sold.
• D) Both if Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units and if Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20 per unit are incorrect.

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Definitions:

Research Stage

A phase in the scholarly inquiry process where a researcher determines the methodology, collects data, and analyzes results.

Opinions

Personal beliefs or judgments that are not founded on certainty or proof.

Hypothesis

An unverified but testable statement about the relationship between two or more variables.

Married People

Individuals who are legally united in marriage, characterized by a recognized partnership or union between two people.