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 .