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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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