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For a business that operates above breakeven and experiences a 15% increase in sales: Which of the following statements will NOT be true as a
For a business that operates above breakeven and experiences a 15% increase in sales: Which of the following statements will NOT be true as a direct consequence of increasing sales volume 15% above the present level (all the other variables remain constant)?
a) the total marginal contribution will increase by 15%
b. Operating income (OI) will increase by 15% over the current OI (operating income)
c. the ratio of variable costs to sales remains constant
d. total variable costs will increase by 15%
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