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Which of the Following Statements Is True When Making Decisions

Question 38

Multiple Choice

Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis?


A) As long as the contribution margin is a positive number,net income will be positive.
B) As long as variable costs are more than fixed costs,net income will be negative.
C) As long as the contribution margin is greater than fixed costs,net income will be positive.
D) As long as the sales price per unit is greater than fixed costs per unit,net income will be positive.

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