Question: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure Question 5Answer a. the lower the contribution

If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure Question 5Answer a. the lower the contribution margin. b. the smaller the impact a percentage change in sales volume will have on profit. c. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution margin. d. the greater the impact on profit from a percentage change in sales volume

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!