A Company Has Provided the Following Data: If the Sales

question 2

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:

Sandstone

A clastic sedimentary rock composed mainly of sand-sized mineral particles or rock fragments.

Rounded Pebbles

Smooth, round stones typically formed by the prolonged action of water or other forms of erosion and weathering on rocks.

Sandstone

A sedimentary rock made primarily of sand-sized grains of minerals or fragments of rocks, classified as clastic.

River

A significant stream of water that moves through a natural channel, heading towards the sea, a lake, or joining another stream.