A Company Has Provided the Following Data If the Sales Volume Decreases by 25%,the Variable Cost Per

question 134

Multiple Choice

A company has provided the following data:
$$\begin{array} { | l | r | l | } \hline \text { Sales } & 3,000 & \text { Units } \\\hline \text { Sales price } & \$ 70 & \text { per unit } \\\hline \text { Variable cost } & \$ 50 & \text { per unit } \\\hline \text { Fixed cost } & \$ 25,000 & \\\hline\end{array}$$
If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,operating profit will:

• A) decrease by $31,875.
• B) decrease by $15,000.
• C) increase by $20,625.
• D) decrease by $3,125.

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Definitions:

Negative Message

A communication that conveys a refusal, denial, or unfavorable information to the recipient.

Gain Acceptance

Gain acceptance means to receive approval or endorsement from others, often through persuasion or demonstration of value.

Delivering Bad News

The act of communicating unfavorable information or decisions in a sensitive and thoughtful manner.

Main Goals

The primary objectives or targets that an individual, group, or organization aims to achieve.