The Impact on Net Operating Income of a Given Dollar

question 36

True/False

The impact on net operating income of a given dollar change in sales can be computed by multiplying the contribution margin by the dollar change in sales.

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Definitions:

Risk-free Return

The theoretical return on an investment with no risk of financial loss, typically represented by the return on government securities.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion around an average.

Defined Contribution Plan

A type of retirement plan where an employer, employee, or both make contributions on a regular basis, and future benefits fluctuate based on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss over a certain period.