The Following Diagram Is a Cost-Volume-Profit Graph for a Manufacturing

question 1

Multiple Choice

The following diagram is a cost-volume-profit graph for a manufacturing company: The formula to determine the Y-axis value ($) at point D on the graph is

• A) Fixed costs + (Variable costs per unit ´ Number of units).
• B) SXY - bSX.
• C) Fixed costs/Unit contribution margin.
• D) Fixed costs/Contribution margin ratio.

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Definitions:

Group Norms

Established standards of behavior shared by members of a group, which guide and influence member actions.

Deviate

To depart from an established course or norms.

Sanctioned

refers to actions that have been officially approved or authorized.

Figurehead

A person who holds a titular position of importance but lacks real power or authority.