The Following Income Statements Are Provided for Two Companies Operating

question 40

Multiple Choice

The following income statements are provided for two companies operating in the same industry: $\begin{array}{c}\begin{array}{l}\\\text {Revenue}\\ \text {Variable costs}\\\text { Contribution margin }\\\text {Fixed costs}\\ \text {Net income}\\\end{array} \begin{array}{lll}\text { Felix Company }\\\$200,000\\(25,000) \\175,000\\(70,000) \\\$105,000 \end{array}\begin{array}{c}\text {Jinx Company}\\\$ 200,000 \\ (70,000) \\130,000 \\ (25,000) \\ \$ 10 5,000\end{array}\end{array}$
Assuming sales increase by $1,000,select the correct statement from the following:

• A) Felix's net income will be more than Jinx's.
• B) Only Felix will experience an increase in profit.
• C) Felix's net income will increase by $250.
• D) Jinx's net income will increase by 6%.

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Definitions:

Stimulus Detection Reflex

An automatic response to identifying and reacting to changes in the environment.

Sustain Their Attention

The ability to maintain focus or concentration on a task or activity over an extended period of time without becoming distracted.

Visual Display

Pertains to any form of presentation that conveys information through visual means, such as screens, signs, or charts.

Motor Skills

Abilities that involve the use of muscles to perform movements, usually categorized into fine (small movements, like writing) and gross (larger movements, like walking) motor skills.