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When a company decides to change its cost structure to reduce variable costs by increasing fixed costs, it recognizes that its variable costs will increase
When a company decides to change its cost structure to reduce variable costs by increasing fixed costs, it recognizes that
| its variable costs will increase yet may result in less profit in high sales years. |
| its contribution margin will decrease yet and result in less profit in high sales years. |
| its contribution margin will increase yet may result in higher profits in high sales years. |
| its variable costs will decrease and may result in higher profits in high sales years. |
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