If Sales Volume Decreased by 10% and Traceable Fixed Costs

question 1

Multiple Choice

If sales volume decreased by 10% and traceable fixed costs decreased by 20% what would be the new contribution margin?

• A) 75,600.
• B) 108,000.
• C) 79,200.
• D) $80,000.

---

Definitions:

Existing Copier

A copier machine that is currently owned or in use within an organization.

Evaluation

The process of examining and judging something's value, quality, or importance.

Net Working Capital

Net Working Capital is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Present Value

The contemporary valuation of future financial inflows or a lump sum, adjusted for a specific rate of return.