Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a firm has low fixed costs relative to all other firms in the same industry, a large change in sales volume (either up or

If a firm has low fixed costs relative to all other firms in the same industry, a large change in sales volume (either up or down) should have:

a.

no effect in any way on the firms as volume does not effect fixed costs.

b.

None of these.

c.

a smaller change in OCF for the firm versus the other firms.

d.

a larger change in OCF for the firm versus the other firms.

e.

a decreasing effect on the cyclical nature of the business.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Finance For Property Investment

Authors: Craig Furfine

1st Edition

036733304X, 978-0367333041

More Books

Students also viewed these Finance questions

Question

Discuss whether we can control stereotyping.

Answered: 1 week ago