A Company Has Provided the Following Data: If the Sales

question 94

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,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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