QUESTION

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I. Assuming TP and FC remain the same, if $\mathrm{CM}$ decreases then $Q R$ decreases. II. Assuming TP, $\mathrm{V}$ and $\mathrm{P}$ remain the same, if $\mathrm{FC}$ increases then $Q R$ decreases. III. Assuming TP, FC and $\mathrm{P}$ remain the same, if $\mathrm{V}$ increases then $\mathrm{QR}$ increases. NOTE: The variables correspond to those used in the lab. You can assume $\mathrm{P}$ is greater than $\mathrm{V}$. \[ \begin{array}{l} F C=\text { fixed costs } \\ V=\text { variable cost per unit } \\ P=\text { selling price per unit } \\ T P=\text { target profit } \\ C M=\text { unit contribution margin } \\ Q R=\text { quantity required } \end{array} \] a) Only I and II are true b) Only 1 and $\mathrm{III}$ are true c) Only III is true d) All are true c) Only II is true f) None are true g) Only I is true b) Only II and III are true

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