Question: Can you please give the correct answer for this question and explain your reasoning? If total costs remain the same, the smaller the proportion of
Can you please give the correct answer for this question and explain your reasoning?
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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