The Following Income Statement Was Produced When Volume of Sales

question 105

Multiple Choice

The following income statement was produced when volume of sales was at 400 units. $\begin{array}{lrr} \text { Sales Revenue } &\$2,000\\ \text { Variable Cost } &\underline{1,200}\\ \text { Contribution Margin} &\$800\\ \text { Fixed Cost} &\underline{300}\\ \text { Net Income } &\underline{\$500}\\\end{array}$
If volume reaches 500 units,net income will be:

• A) $625
• B) $1,800
• C) $700
• D) None of these

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Definitions:

Knowledge

Facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Detecting Stimulus

The process by which organisms identify and respond to environmental changes or signals.

Recognizing Stimulus

The act of identifying a specific stimulus from a set of similar stimuli, based on prior experience or knowledge.

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from our environment.