Question: Calculate the affect on profitability between a 5 % cost reduction in variable costs versus a 5 sales increase in the following scenario: Sales $

Calculate the affect on profitability between a 5% cost reduction in variable costs versus a 5 sales increase in the following scenario:


Sales $100,000


COGS (variable parts)  $40,000


Admin expenses (fixed parts)  $25,000

 

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