C. Depreciation
D. Telephone Expense
Question 18 of 20
5.0 Points
If Whisper Wings Airlines cuts its domestic fares by 30 %,
A. its fixed costs will decrease.
B. profit will increase by 30 %.
C. a profit can only be earned by decreasing the number of flights.
D. a profit can be earned either by increasing the number of passengers or by decreasing variable costs.
Question 19 of 20
5.0 Points
In evaluating the margin of safety, the
A. break-even point is not relevant.
B. higher the margin of safety ratio, the greater the margin of safety.
C. higher the dollar amount, the lower the margin of safety.
D. higher the margin of safety ratio, the lower the fixed costs.