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Choose TRUE or FALSE as applicable next to each of the following items as they pertain to cost structure. A highly variable cost structure could
Choose TRUE or FALSE as applicable next to each of the following items as they pertain to cost structure. A highly variable cost structure could potentially have the same break even point as a highly fixed cost structure. A highly fixed cost structure will have a lower contribution margin per unit than a highly variable cost structure. A highly variable cost will result in profits being less sensitive to economic downturns (as compared to a highly fixed cost structure). A highly variable cost structure will result in profits being less sensitive to economic upturns (as compared to a highly fixed cost structure). When a cost structure is highly fixed, less TOTAL cost will fall as volume falls (as compared to a highly variable cost structure). When a cost structure is highly variable, more TOTAL costs will increase as volume increases (as compared to a highly fixed cost structure)
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