Which of the Following Is True If Output Increases by 20

question 190

Multiple Choice

Which of the following is true if output increases by 20% and is still within the relevant range?

• A) Total fixed costs increase by 20%.
• B) Contribution margin decreases by 60%.
• C) Net income decreases by 40%.
• D) Total variable costs increase by 20%.

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Definitions:

Fidelity

The degree to which a copy or representation of something is faithful to the original.

Beneficence

The ethical principle that involves acting in the best interests of others, promoting good and preventing harm.

Acts of Omission

Instances where something that should have been done was not done, often highlighted in legal and ethical discussions.

Acts of Commission

Actions that are deliberately undertaken, which can have intended or unintended consequences.