A Company Has Provided the Following Data: If the Sales

question 219

Multiple Choice

A company has provided the following data: If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net operating income 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:

Itemized List

A detailed list where individual items or elements are separately presented and often described or quantified.

Diplomatic Way

A strategy or method that involves handling situations in a sensitive, tactful, and effective manner, often to maintain good relationships and avoid conflict.

Payment

The transfer of money or goods in exchange for a product or service.

Charge

In a physical context, it refers to an object having an excess or deficiency of electrons, resulting in a positive or negative electrical state.