Although the Rate of Adolescent Substance Use Has Decreased, ________

question 69

Multiple Choice

Although the rate of adolescent substance use has decreased, ________

• A) tobacco use has been eliminated.
• B) binge drinking has not.
• C) alcohol and tobacco use remains a persistent problem.
• D) adult use has increased.

Assess the impact of changes in variable costs and sales volume on net operating income.

Determine the margin of safety in both dollar terms and as a percentage.

Analyze the effects of a change in sales mix on the break-even point and net operating income.

Understand the concept and computation of break-even points in both sales units and dollar sales.

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Definitions:

Contribution Margin

The sum by which the income from sales surpasses variable expenses, showing the extent to which revenue aids in covering fixed costs and generating profit.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Component

An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.