Toye Corporation Has Provided Its Contribution Format Income Statement for March

question 41

Multiple Choice

Toye Corporation has provided its contribution format income statement for March.


-If the company's sales increase by 12%,its net operating income should increase by about:

• A)5%
• B)12%
• C)223%
• D)76%

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Definitions:

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Contract

A legally binding agreement between two or more parties that is enforceable by law, characterized by an offer, acceptance, consideration, and mutual intent to be bound.