increase profit by an amount equal to the per unit contribution margin.

Question $44$

$3\mathrm{.}67$ pts

Select the incorrect statement regarding cost structures.

The more variable cost, the higher the fluctuation in income as sales fluctuate.

When sales change, the amount of the corresponding change in income is affected by the company's cost structure.

Highly leveraged companies will experience greater profits than companies less leveraged when sales increase.

Faced with significant uncertainty about future revenues, a low leverage cost structure is preferable to a high leverage cost structure

Question $45$

$3\mathrm{.}67$

Omega Company has sales of $$324,000$ and cost of goods sold of $$212,000.$ The cost of goods sold is a variable cost.