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 operating income will be positive.
B) As long as variable costs are more than fixed costs, net operating income will be negative.
C) As long as the contribution margin is greater than fixed costs, net operating income will be positive.
D) As long as the sales price per unit is greater than fixed costs per unit, net operating income will be positive.
Correct Answer:
Verified
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