Question: Select the correct statement regarding the relationship between cost behavior and profits. rev: 11_16_2017_QC_CS-108227 Multiple Choice A pure variable cost structure offers higher potential rewards.

Select the correct statement regarding the relationship between cost behavior and profits.

rev: 11_16_2017_QC_CS-108227

Multiple Choice

A pure variable cost structure offers higher potential rewards.

A pure fixed cost structure offers more security if volume expectations are not achieved.

In a pure variable cost structure, when revenue increases by $1, so do profits.

In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.

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