The Following Diagram Is a Cost-Volume-Profit Graph for a Manufacturing

question 49

Multiple Choice

The following diagram is a cost-volume-profit graph for a manufacturing company: The formula to determine the Y-axis value ($) at point D on the graph is

• A) Fixed costs + (Variable costs per unit × Number of units).
• B) ΣXY - bΣX.
• C) Fixed costs/Unit contribution margin.
• D) Fixed costs/Contribution margin ratio.

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Definitions:

Thing or Benefit

Refers to any item of value or advantage that is provided or promised in a transaction or agreement.

Unconscionable Contracts

Agreements that are so unfairly one-sided that they are deemed immoral or unjust and are therefore unenforceable under the law.

Unconscionability

A doctrine in contract law that describes terms that are so unjustly one-sided that they are considered shockingly unfair or oppressive.

Doctrine of Privity

A principle that states a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it.