Question: If variable costs per unit increase by the same amount as the selling price which of the following is the expected impact on the profit?
If variable costs per unit increase by the same amount as the selling price which of the following is the expected impact on the profit?
A The profit will increase if fixed costs remain the same.
B The profit will remain the same if fixed costs remain the same.
C The profit will decrease if fixed costs decrease.
D The profit will decrease if fixed costs remain the same.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
