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Company 3M and Company 4P have similar levels of production and sales. Company 4P has a larger proportion of fixed costs than those that are
Company 3M and Company 4P have similar levels of production and sales. Company 4P has a larger proportion of fixed costs than those that are variable costs. Company 3M has a larger proportion of variable costs, than those that are fixed costs. Sales are expectedto increase by 30% for both companies during 2014 During 2014, Company 4P will experience a. a smaller increase in income than Company 3M. b. a larger decrease in per unit variable costs than Company 3M. C. a larger proportional fluctuation in income than Company 3M. d. less operating leverage than Company 3M. 24
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