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:

Videoconferencing

A method of using video and audio technologies to conduct a conference between two or more participants at different sites by using computer networks to transmit audio and video data.

Crisis Briefing

An informational meeting or report designed to provide details and guidance during an emergency or critical situation.

Readability

The ease with which text can be read and understood by an audience.

Spoken Communication

The verbal exchange of information and ideas between individuals or groups.