Question
If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure: A: the greater the impact on profit
If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure:
A: the greater the impact on profit from a percentage change in sales volume.
B: the smaller the impact a percentage change in sales volume will have on profit.
C: the lower the contribution margin.
D: the smaller the impact a percentage change in sales volume will have on profit and the lower the contribution margin.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
