German Division: If the sales volume decreases by 25%, the variable expense per unit increases by 15%, and all other data remain as in the budget, net operating income will be:

Question

Quizplus · Accepted Answer

A decrease in sales volume by 25% would reduce the number of units sold, increasing the variable expense per unit by 15%. This scenario would lead to a decrease in net operating income, making £37,031 the correct choice as it represents a significant decrease from the other options provided.

German Division: If the Sales Volume Decreases by 25%, the Variable