You Have Been Provided with the Following Information If Sales Decrease by 10%,what Level of Fixed Costs Will

question 78

Multiple Choice

You have been provided with the following information:
$$\begin{array} { | l | r | } \hline & \text { Total } \\\hline \text { Sales } & \$ 90,000 \\\hline \text { Less Variable expenses } & \underline{54,000} \\\hline \text { Contribution margin } & 36,000 \\\hline \text { Less fixed expenses } & \underline { 24,000 } \\\hline \text { Operating profit } & \$ 12,000 \\\hline\end{array}$$ If sales decrease by 10%,what level of fixed costs will maintain the current operating profit?

• A) $12,000.
• B) $20,400.
• C) $21,600.
• D) $24,000.

Explain the criteria, purpose, and implications of a motion for summary judgment.

Identify the required documents for serving process on a defendant and the procedures involved in their issuance and service.

Describe the role and importance of procedural requirements in the litigation process.

Define a motion to dismiss and the supporting documents that may be filed with it.

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Definitions:

Profit

The profit earned when the total income surpasses all the expenditures, costs, and taxes necessary for maintaining the business.

Profit-Maximizing

A strategy or approach taken by firms to achieve the highest possible profit from their operations.

Market Price

The existing rate at which an item or service is offered for buying or selling on the market.

Non-Negative Profit

A profit that is zero or positive, indicating that a business is not losing money.