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:

Vesicular Transport

The movement of molecules across cellular membranes within membrane-bound sacs called vesicles.

Mediated Transport

The movement of substances across cell membranes facilitated by specific transport proteins.

Active Transport

A cellular process that requires energy to move substances across a cell membrane against a concentration gradient.

mRNA

Messenger RNA (mRNA) is a type of RNA that carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.