[The Following Information Applies to the Questions Displayed Below

question 66

Multiple Choice

[The following information applies to the questions displayed below.]
The financial statements of New World,Inc. ,provide the following information for the current year:

-New World's net cash flow from operating activities for the current year is:

• A)$1,191,750
• B)$1,192,800
• C)$1,113,000
• D)$1,160,250

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Definitions:

Variable Selling Expenses

Costs that fluctuate with the level of sales activity, such as commissions and shipping fees.

Contribution Margin

The amount remaining from sales revenue after variable expenses are subtracted, used to cover fixed costs and generate profit.

Variable Administrative Expenses

Costs that change in proportion to the activity of a business.

Incremental Manufacturing Cost

The additional cost incurred to produce an additional unit of a product.